Question

Which business risk is avoidable with proper precautions? A. Machine breakdown B. obsolescence of fixed machinery. C. natural calamities. D. Change in management.

Answer 1

a. machine breakdown

Answer 2

The business risk which is avoidable if there is proper precaution is letter A. Machine Breakdown. Comparing to other choices, if a machine is used with absolute care and it is well-maintained, then possible frequent breakdowns will be avoided. Unlike the obsolescence of fixed machinery; this means that some fixed assets are becoming outdated and can wear-out in due time which becomes a risk that is unavoidable. Natural calamities, on the other hand are inevitable because humans can predict some natural disasters, but cannot control the extent of damage caused by certain calamities to the business. Last but not the least, is the change in management. Despite the fact that each and everyone in the company is doing their job very well, still, those higher in authority may choose to retire or transfer to another company.