Q. 5 Explain the various types of risk that can affect a business project.
Ans : Launching a business is a risky endeavor and as businesses expand they are likely to face a variety of risks beyond the possibility of unprofitability. Businesses that expand operations into foreign countries face many political risks that purely domestic companies do not have to deal with. Risk management describes the methods businesses use to control and adapt to the risks they face, including “macro” and “micro” political risks.
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