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State the term- Dealing with general risk
Part of the strategic decision making process is to analyse all risk factors involved with pursuing a specific course of action.
Risk is when actual outcome differs to the expected outcome. Business will make a decision on which the outcome isn't known with certainty, for illustration investing in a new project, entering a new market etc.
In order to grow some risk has to be taken though the key is management of the risk and company's attitude towards risk (i.e. Riskseekers or riskaverse).
What are the benefits of the JIT inventory control system? The just-in-time (JIT) inventory control system lesser inventory carrying costs and tends to increase quality.
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What is risk aversion? If common stockholders are risk averse, how do you explain the fact that they often invest in very risky companies? Risk aversion is the trend to avoid add
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