Risk and Uncertainties

Q.

Explain the concept of business risk and its causes.

Q.

What reward does a businessman get for bearing the risk?

1. None of the above

2. The reward of bearing risk is loss.

3. The reward if bearing risk is neutral.

4. The reward of bearing risk is profit.

Q.

What is business risk? What is its nature ?

Q.

Explain nature of business risk.

Q.

Risk is an inherent element of a business. Do you agree?

Q.

State the different ways in which an entrepreneur can deal with risk.

Q.

State True or False: In any business is there a certain amount of risk involved.

1. False

2. True

Q.

Explain the following features of business risk.

(a) Business risks arise due to uncertainties

(b) Risk is an essential part of every business

Q.

Risk is not an essential part of a business.

1. True

2. False

Q. A contract of indemnity is a ___________.

1. contingent contract
2. wagering contract
3. quasi contract
4. void agreement.

Q. Speculative risks and pure risks are the types of ___ risks.

Q.

Define 'business risk'.

1. The probability or chance a business incurs a loss is called risk.

2. The chance a business will incur a slight loss in business is called risk.

3. The chance a business will incur no loss in business is called risk.

4. All of the above

Q.

What reward a businessman gets for bearing the risks?

Q.

What is 'business risk'? What is its nature?

Q.

What is business risk? What is its nature?

Q.

The degree of risk does not depend mainly on the nature and size of the business.

1. False

2. True

Q.

Risk are caused by ___, ___ or ___ causes

1. natural, human, capital

2. natural, human, economic

3. natural, human, political

4. natural, human, civil

Q.

Mr. Singh has a denim store at the market. There was a theft at his store and he lost 3lakh rupees. What kind of risk did he face?

1. Speculative risk

2. Pure risk

3. None of the above

4. Natural risk

Q. ___ of business and ___ of business are the main factors which determine the amount of risk in a business.

Q. A risk management system should mean that a company will ____________________.

1. Avoid all risks
2. Reject any attempt to categories risk
3. Consider the likelihood of risks materializing
4. Establish risk-avoiding controls irrespective of their costs

Q. Risk is caused by natural, human and policital causes.

1. False
2. True

Q. Liability which depends on happening or not happening of certain event is known as ______________ .

1. Fixed liability
2. Contingent liability
3. Current liability
4. All of the above

Q. Give me some examples to curb uninsurable risk

Q. Write short notes on the following.

Causes of Business risk

Q. Probability or chance of incuring loss is called risk

1. False
2. True

Q. Risk is not an essential part of a business.

1. True
2. False