New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following risk factors pose business risk

    to an entity?                       I.        Sales volume and sales price                     II.        Purchase Price of raw material                    III.        Operational expenses
    A Only I Correct Answer Incorrect Answer
    B I and II Correct Answer Incorrect Answer
    C Only II Correct Answer Incorrect Answer
    D I and III Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Business risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail. Sales volume and price, purchase prices, operational expenses have a direct bearing on the profitability of the company and are factors leading to business risk.

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