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5.02

Vocabulary

TermDefinition
Business risk The possibility of loss (failure) gain (success) inherent in conducting business.
Economic risk Risks that result from changes in overall business conditions.
Natural risk Perils resulting from environmental causes.
Human risks Perils caused by human errors as well as the unpredictability of customers, employees , or the work environment.
Pure risks The possibility of loss to a business without any possibility of gain.
Speculative risks Chances of loss that may result in loss, no change, or gain.
Guarantees A promise made to the consumer that a product's purchase price will be refunded if the product is not satisfactory.
Warranties A promise made by the seller to the consumer that the seller will repair or replace a product that does not perform as expected.
Competition the rivalry among two or more businesses to attract scarce customer dollars
Monoply controlled by one supplier, and there are no substitute goods or services readily avaliable
Created by: Zakiawatkins
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