Question

What does "Lower Risk" mean for a retail business?

Options

• Retailers never face any loss.

• Retailers face lower losses with moderate profit potential.

• Retailers have the highest risk in trade.

• Retailers deal only in high-value goods.

Answer 1

Retailers face lower losses with moderate profit potential.

Explanation:

Retail business involves lower risk compared to wholesale or manufacturing because retailers deal with smaller quantities and local demand, resulting in moderate but stable profits.