What is the definition of business risk?
A) An event or action that will make it more difficult for an organization to achieve its objectives.
B) An event or action that causes an organization to become bankrupt.
C) An event or action that causes an organization's financial statements to be materially incorrect.
D) Unfortunate events or actions that are common to all businesses in the economy.

Question

Quizplus · Accepted Answer

Business risk refers to any event, circumstance, or action that can make it more challenging for an organization to achieve its goals or objectives. This can include external factors such as changes in the market or the economy, as well as internal factors such as poor management decisions or ineffective processes. Business risk does not necessarily mean that the organization will become bankrupt or that its financial statements will be incorrect, although these outcomes can sometimes result from business risk.

What Is the Definition of Business Risk