Chapter 21 of 23
Revision Notes
Business Risks and Insurance — Revision Notes
ICSE · Class 11 · Commerce
Business Risks and Insurance revision notes for ICSE Class 11 Commerce: 4 topics in quick points. Part of the ICSE Class 11 Commerce syllabus.
65 questions34 flashcards5 concepts
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Key Topics to Revise
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1. Meaning, Nature, and Characteristics of Business Risks
- Risk means uncertainty regarding loss and the chance of loss.
- Business risk refers to the probability of losses or inadequate profits due to uncertainties or unexpected events beyond control.
- A businessman has to bear three kinds of risks: loss of assets, loss of income due to accident, death or ill health, and liability of loss towards third party.
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2. Causes of Business Risks
- Business risks arise from internal and external causes.
- Internal risks arise from factors within the business firm.
- External risks arise from factors outside the business firm and are beyond the control of management.
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3. Insurable Risks and Non-Insurable Risks
- All business risks cannot be insured.
- Insurable risks are those risks which can be insured and whose probability can be estimated in advance.
- Insurable risks require large exposure so the risk can be spread through insurance.
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4. Meaning, Types, and Characteristics of Insurance
- Insurance is a shield against risk.
- Insurance does not prevent risk; it spreads the loss among many insured persons.
- Insurance is based on the principle of cooperation.
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Full NotesKey Concepts
Business risk refers to the probabilityRisk is unavoidable in businessInternal risks arise from withinExternal risks arise from outsideInsurable risks are risks that can
Frequently Asked Questions
What are the important topics in Business Risks and Insurance for ICSE Class 11 Commerce?
Key topics in Business Risks and Insurance include Meaning, Nature, and Characteristics of Business Risks, Causes of Business Risks, Insurable Risks and Non-Insurable Risks, Meaning, Types, and Characteristics of Insurance. Study these first, then practise questions on each for Class 11 exams.
How should I revise Business Risks and Insurance for Class 11 exams?
Learn the core ideas first, then work through the 65 practice questions on Business Risks and Insurance. Revise 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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