which type of business risk involves both the possibility of gain as well as possibility of loss - Economics - Unit I- Indian Economy on the Eve of Independence

Question

which type of business risk involves both the possibility of
gain as well as possibility of loss??

Shvetika S. · Accepted Answer

Speculative risk is the type of risk in which both the chances of
profit as well as loss exists For example, if the price of a
particular good changes in favour of the producer, then he will
earn profits, otherwise, he will incur losses Therefore, the
speculative risk of earning profit or incurring losses depends on
the prevailing market conditions

This kind of risk usually arises due to the uncertainty of the
market conditions Besides the market conditions, it also depends on
various human as well as economic factors such as strikes, power
failure, technological changes, etc

which type of business risk involves both the possibility of gain as well as possibility of loss??