Question

Business risk is not likely to arise due to

(a) Changes in government policy

(b) Good management

(c) Employee dishonesty

(d) Power failure

Answer 1

Good management enables an enterprise to achieve new milestones and does not bring on a business risk. Changes in government policy, dishonesty on the part of employees and power failure can lead to losses and thus are considered business risks.

Hence, the correct answer is option (b).