Entrepreneurship as Innovation and Problem Solving — Entrepreneurship STD 11 Commerce — Question

Economic factors are the most important cause of external risks. They result from the changes in the prevailing market conditions in the form of:

1. Change in demand for the product.
2. Price fluctuations.
3. Change in tastes and preferences of the consumers.
4. Change in the income of the consumer.
5. Change in the output of the competing firm.
6. Change in trade cycle.
7. Increase in competition for the product.
8. Inflationary tendency in the economy.
9. Rising unemployment in the country.
10. Fluctuations in the world economy.

The risks associated with this factor are generally less predictable because they do not appear at regular intervals.