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Entrepreneurial Risk
Term | Definition |
---|---|
Risk | the possibility of damage, injury, or loss. |
Markets | Some of the risks that almost all businesses face involve competition, price changes, style changes, competition from new products, and changes from fluctuating economic conditions. |
Accidents | Businesses face risks beyond these market and economic shifts. a shipment of laptops destroyed in transit threaten the security of a business. cost money, and they may cause failure. entrepreneurs identify risks they face, and then eliminate the risks. |
Speculative risk | the uncertainty as to whether an activity will result in a gain or a loss.Risks, such as building a plant that turns out to have the wrong capacity are these types of risk. is unavoidable and is inherent |
Pure risk | uncertainty as to whether some unpredictable event that can result in loss will occur. can only result in loss. it exists where possibility of loss is present, extent of loss is unknown. |