Following are the characteristics of business risks. Which of the following is not correct?

Loss is the reward for risk bearing

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Business risks are due to uncertainties

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Risk is an essential component of every business

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Degree of risk depends mainly upon the nature and size of business

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Solution

The correct option is A Loss is the reward for risk bearing
Every business involves certain risks. To be a successful businessman, the owner has to take risk. Business risk has many characteristics. They are:
Business risks are due to uncertainties.
Risk is an essential component of every business.
Degree of risk depends mainly upon the nature and size of the business.
Loss cannot be called as reward for risk bearing because profit is the reward for risk bearing.

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