Introduction of the new products
Uncertain policy of rival firms
Changes in tastes
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is D. All of the above.
Risks in business arise from a variety of sources, including:
- Introduction of new products: When a company introduces a new product, it is always a risk that the product will not be successful. The product may not meet the needs of consumers, or it may be too expensive. If the product is not successful, the company may lose money.
- Uncertain policy of rival firms: The policies of rival firms can also affect the risk of a business. For example, if a rival firm lowers its prices, it may force the company to lower its prices as well. This could lead to a decrease in profits.
- Changes in tastes: The tastes of consumers can also change over time. If consumers’ tastes change, the demand for a company’s products may decrease. This could lead to a decrease in sales and profits.
In addition to these risks, businesses also face risks from natural disasters, economic downturns, and political instability. These risks can be difficult to predict and can have a significant impact on a business.
Businesses can take steps to mitigate risks, such as conducting market research, diversifying their product offerings, and hedging their currency exposure. However, it is impossible to eliminate all risks. Businesses must be prepared to deal with risks as they arise.