Q.What is meant by business risk?

Because business commits resources today for an uncertain future return, every business carries some risk. …

Business risk refers to the possibility that a business's actual results will differ from what was expected -- including the possibility of a financial loss. It arises because a business always commits capital, material, and effort in the present, while the return on that commitment can only be realised in the future, and the future can never be forecast with total accuracy. …

A common slip is treating "risk" and "uncertainty" as identical terms; the BIEAP commerce syllabus expects the distinction -- a risk can broadly b …