Auditing & Assurance Services
Auditing & Assurance Services
6th Edition
ISBN: 9780077862343
Author: LOUWERS, Timothy J.
Publisher: Mcgraw-hill Education,
Question
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Chapter 4, Problem 1RC
To determine

State the term business risk.

Expert Solution & Answer
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Explanation of Solution

Business Risks:

Business risks are the risks arises due to prevailing possibilities that hinder a company’s capability to accomplish its objectives and to implement its strategies effectively. In other words, it may raise the probability where business objectives could not be achieved.

A business risk may arise due to the uncertain market conditions which may adversely impact the company’s performance.

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