Financial and business risk

Anonymous
timer Asked: Aug 11th, 2014
account_balance_wallet $5

Question Description

what is a business risk and what are some of the factors that influence a firms business risk as it relates to their business operations or marketplace. Explain what the difference between financial and business risks within a business structure.

Tutor Answer

warrenc
School: Cornell University

Business risk is the possibility of loss or less profits due to uncertainty such as increases competition , change in policy , change in taste etc . 

Financial risk - It is the part of your financial structure of your business , business transactions . You could be overreliant on a single consumer or change in interest rates . 

Employee risks - Sometimes some of your staff may go to strike or some critical employees are not well or not in fit condition . This may cost your company loss of money . 

Health and safety - If there tends to be a change In regulations regarding safetype, health or quality . Then this might result in higher costs and reduce of profits . 

Political and economical risks - Some companies may be affected by the policies of governments . Some change In the rules and regulations may make significant difference in a companies profit and may also bring it down . 

Strategic risks - This risk is associated with the operations of a particular industry . They could be due to changer in consumer demand or technological evolutions which could pose a threat in regard to how you products are viewed or perceived by your customers . 

BUSINESS RISK is different from FINANCIAL RISK because it is independent of amount of debt a business owes . 


flag Report DMCA
Review

Anonymous
Top quality work from this guy! I'll be back!

Similar Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors