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risk
Term | Definition |
---|---|
Risk | the possibility of damage, injury, or loss |
Markets | the risks that almost all businesses face involve competition, price changes, style changes, competition from new products, and changes from fluctuating economic conditions |
Accidents | They cost money, and they may cause a business to fail. First, entrepreneurs must be able to identify all the possible risks they face, and then decide upon preventive measures to eliminate or reduce the impact of the risks. |
Speculative risk | the uncertainty as to whether an activity will result in a gain or a loss. |
Pure risk | can only result in loss, never in gain. This kind of risk consists of hazards such as a fire or a hurricane, death of key employees, or customer injuries on the premises of the business |