Profitability
Revenue - cost of goods sold
What is Gross Profit?
This type of risk involves natural disasters or accidents.
What is hazard risk?
This occurs when two businesses sell similar products to the same customers.
What is direct competition?
A company donates part of every sale to local schools, reflecting this environmental factor.
What is ethical?
Global Trade allows businesses to access these.
What are new markets and resources?
Gross Profit - Operating Expenses
What is Net Profit?
This type of risk results from poor management decisions or internal processes.
What is operational risk?
This occurs when businesses sell different products that satisfy the same need.
What is indirect competition?
When the government increases taxes and a business must raises prices, it’s due to this factor.
What is political?
This is a common challenge of global trade caused by currency value changes.
What are exchange rate fluctuations?
This type of business factor includes employee productivity.
What is an internal factor?
This type of risk comes from high-level business decisions or strategies.
What is strategic risk?
This type of competition describes the shampoo industry.
What is monopolistic competition?
A business switches to recycled packaging after customers request eco-friendly materials.
What is cultural or social?
A tax on imported goods is called this.
What is a tariff?
This type of expense includes rent for office space.
What is an operational expense?
This risk type can result in either a gain or a loss.
What is speculative risk?
This 1890 law was the first federal act to prevent monopolies from forming.
What is the Sherman Antitrust Act?
A company changes its marketing strategy after a new competitor enters the market.
What is competitive?
Buying goods from other countries is known as this.
What is importing?
The motivation for starting a business.
What are profit and personal satisfaction?
This type of risk includes the possibility of a business losing money.
What is a business risk?
This market structure includes a few large firms, such as the automobile industry.
What is an oligopoly?
A company's software becomes out of date or obsolete.
What is technological?
Selling goods to other countries is known as this.
What is exporting?