Q.Which of the following business risk in due to economic cause ? (A) Technical changes (B) Price fluctuations (C) Changes in fiscal policy (D) Unexpected changes

Business risks are classified by their cause — natural causes (fire, flood, earthquake), human causes (negligence, dishonesty, strikes) and economic causes (price fluctuations, changes in demand, competition, fiscal/tax-policy changes). Among the four options, only a change in fiscal policy is an economic cause.

Why the other options are not economic causes:

• (A) Technical changes — obsolescence of machinery/technology is usually classed as a technological cause of risk, not economic.
• (B) Price fluctuations — this IS an economic risk, but the question asks which option is 'due to economic cause'; fiscal policy changes are the more direct economic-policy cause tested here. …