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Business Risks and Causes of Failure

ICSE · Class 11 · Business Studies

Quick revision notes for Business Risks and Causes of Failure — ICSE Class 11 Business Studies. Key concepts, formulas, and definitions for last-minute revision.

45 questions36 flashcards5 concepts

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Key Topics to Revise

1

Meaning of Business Risk

  • Business risk means the chance of loss in business activities due to uncertain future events.
  • Risk is linked with uncertainty of profits and the danger of loss.
  • A risk occurs when the actual outcome is different from the expected outcome.
2

Types of Business Risks

  • Strategic risks arise due to errors in strategic decision making.
  • Strategic risk can happen when a company adopts faulty strategies or grows too fast.
  • Raymonds suffered loss by diversifying into cement manufacturing.
3

Methods of Handling and Managing Risks

  • Accepting and absorbing risk means accepting small risks and dealing with them if they occur.
  • Avoiding risk means not entering the activity that creates the risk.
  • Avoiding risk is a negative device and is not always practicable.
4

Business Failure and Its Causes

  • Business failure means the closing or collapse of a business firm.
  • Causes of business failure are classified into two broad categories: internal and external.
  • Internal causes come from within the enterprise.

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Key Concepts

Business risk is the chanceA peril creates the riskThese arise from faulty strategic decisionsThese refer to deterioration inThese arise from problems in daily

Frequently Asked Questions

What are the important topics in Business Risks and Causes of Failure for ICSE Class 11 Business Studies?
Key topics in Business Risks and Causes of Failure include Business Risks: Complete Classification and Types, Business Risks and Causes of Failure - Chapter Overview, Business Risks — Complete Overview. These are the concepts ICSE Class 11 examiners draw on most — study them first, then practise related questions.
How to score full marks in Business Risks and Causes of Failure — ICSE Class 11 Business Studies?
Understand the core concepts first, then work through the 45 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

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