What is meant by business risk?

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Business risk refers to the possibility that a company will experience lower profits or incur a loss rather than making a profit. It encompasses any situation which could endanger a company's ability to achieve its financial goals, ranging from internal factors like operational inefficiencies and mismanagement to external factors such as economic downturns, changes in regulations, or shifts in market demand. Business risk can affect the overall performance and sustainability of a business.

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