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vocab 2

TermDefinition
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 also face risks beyond these market and economic shifts.. A warehouse may burn down and large amounts of expensive inventory may be lost. Events like these threaten the security of a business.cost money, and they may cause a business to fail
Speculative risk an activity will result in a gain or a loss. Risks, such as building a plant that turns out to have the wrong capacity or keeping an inventory level that turns out to be too high or too low, are speculative risks.
pure risk some unpredictable event that can result in loss will occur. 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 employees, or customer injuries on the premises of the business
Created by: arod1
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