The risk for firms that follow the unrelated diversification strategy in developed economies is that During recessions, external investors frequently sell their conglomerate stock. Business risk is the potential for a firm or organization to have lower earnings or failure. A business risk is anything that compromises a company's capacity to meet its financial objectives.
Numerous variables may combine to produce firms risk. Damage from fire, flood, or other natural disasters are a few examples of hazards with uncertainty as their basis. sudden financial loss brought on by a recession or the failure of another company that owes you money.
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