The possibility of loss from human error

A risk response strategy that involves choosing not to do something that is considered risky

The amount of money a business pays for the products it sells or for the raw materials from which it produces goods to sell

Money left after the cost of goods expense and operating expense are each subtracted from the total income

Chances of loss that carry with them the possibility of loss or no loss

A risk response strategy that involves trying to reduce the chance of loss or the severity of loss

Monetary reward a business owner receives for taking the risk involved in investing in a business

If a business has a monthly income of $5000 with expenses totaling $3000, what is their profit?

The desire to make a profit, which moves people to invest in business