Entrepreneurship and Small Business Management

Section 1: Identifying Business Risks

Section 22.1 Summary
Every business faces risks. Most business decisions involve speculative risks. Speculative risk is risk that is inherent to the business, such as having losses rather than making profits. Businesses face many pure risks, including crimes, natural disasters, and accidents and injuries. Pure risk is the threat of a loss to your business without any possibility of gain. Businesses should establish policies, controls, procedures, and penalties to prevent both shoplifting and employee theft.

Section 22.1 Reading Organizer
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