Question

Which of the following is a main problem associated with business?

• A. Profit
• B. Money
• C. Sales
• D. Risk Management

Hint:

A core principle of business is the relationship between risk and return. The saying "no risk, no reward" highlights that taking and managing risks is a fundamental part of the business process. Therefore, risk management is a perpetual business problem.

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
The question asks to identify which of the options represents a fundamental problem or challenge that businesses face.
Step 2: Detailed Explanation:
Let's analyze the options:
- (A) Profit and (C) Sales are objectives or outcomes of a business, not problems. A lack of profit or sales is a problem, but profit and sales themselves are goals.
- (B) Money (or capital) is a resource. A lack of money (finance) is a problem, but money itself is a necessary resource.
- (D) Risk Management: Risk is an inherent and unavoidable characteristic of any business. It is the uncertainty or possibility of loss. Businesses face various risks—financial, operational, market, and strategic. The challenge or problem for any business is to identify, assess, and manage these risks effectively. Therefore, Risk Management is a fundamental problem/challenge associated with business.
Step 4: Final Answer
Among the given options, Risk Management represents a main problem or challenge that is inherent to running a business.