The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk. To describe: The way given industry condition will result in business risk.

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Answer 1

Question

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

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Answer 2

Question

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

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Answer 3

Question

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

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Answer 4

Question

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

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Answer 5

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 6

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 7

Chapter 4, Problem 4.30P

A

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 8

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 9

B

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 10

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 11

C

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 12

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 13

D

To determine

Introduction: The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc. is known as business risk.

To describe:The way given industry condition will result in business risk.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 4 - Prob. 4.1RQ Ch. 4 - Prob. 4.2RQ Ch. 4 - Prob. 4.3RQ Ch. 4 - Prob. 4.4RQ Ch. 4 - Prob. 4.5RQ Ch. 4 - Prob. 4.6RQ Ch. 4 - Prob. 4.7RQ Ch. 4 - Prob. 4.8RQ Ch. 4 - Prob. 4.9RQ Ch. 4 - Prob. 4.10RQ

The possibility that the profits of an entity will fall due to uncertainties like change in tastes and preferences of the customer, change in taxation policies, natural calamities, etc.is known as business risk. To describe: The way given industry condition will result in business risk.

Solution Summary: The author explains that a sudden fall in demand would decrease the profit earning capacity of the business and hence exposure to more business risk.

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