Question
Which of the following risk factors pose business risk to an entity? Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
I.       Sales volume and sales price                   Â
II.       Purchase Price of raw material                  Â
III.       Operational expenses
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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