Business info
Pure and Speculative Risks Pure risks cause a loss and a businessman cannot make profit out of them. These risks may arise form accident, fire, theft, strike, and others. These are not inherent in business. On the other hand, speculative risks are inherent in business and a person may either suffer a loss or earn a profit. For example, change in demand may cause speculative risk.
Internal and External Risks Internal risks rise due to internal factors, e.g. breakdown of machinery, accident, etc. Such risks can e minimized. Risks arising from factors beyond the control of a firm are external risks. Flood, earthquake, change in market conditions, government policies and others are causes of external risks.
Property and Personal Risks Damage or destruction of property are property risks. Injury or loss of life due to accidents, occupational diseases, etc. is personal risks.
Insurable and Non-Insurable Risks Insurable risks are hose which a can be insured it is possible to determine he probability of such risks. No-insurable risks cannot be insured because their probability cannot be determined.
Tags: bank business business, based business home opportunity, better bureau business, Business info