Chapter 3 of 8
Revision Notes
Business Risks and Causes of Failure — Revision Notes
ICSE · Class 11 · Business Studies
Business Risks and Causes of Failure revision notes for ICSE Class 11 Business Studies: 4 topics in quick points.
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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Full NotesKey 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 Meaning of Business Risk, Types of Business Risks, Methods of Handling and Managing Risks, Business Failure and Its Causes. Study these first, then practise questions on each for Class 11 exams.
How should I revise Business Risks and Causes of Failure for Class 11 exams?
Learn the core ideas first, then work through the 45 practice questions on Business Risks and Causes of Failure. Revise definitions regularly and use flashcards for quick recall before the exam.
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Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
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