Risk Management in Business MCQs – Chapter-wise Objective Questions
Risk Management in Business MCQs – Chapter‑wise Objective Questions
Class: 10
Subject: Computer Science
Unit: Unit 8 – Entrepreneurial Skills
Topic: Risk Management in Business
Board: CBSE Board Examination
Subject: Computer Science
Unit: Unit 8 – Entrepreneurial Skills
Topic: Risk Management in Business
Board: CBSE Board Examination
These Multiple Choice Questions (MCQs) are designed strictly as per the CBSE curriculum based on NCERT books, making them ideal for CBSE Class 10 Computer Science examination standard.
Q1. Business risk refers to:
Answer: b) Possibility of loss
Explanation: Risk arises due to uncertainty in business operations.
Explanation: Risk arises due to uncertainty in business operations.
Q2. Risk management means:
Answer: b) Identifying & controlling risks
Explanation: It minimizes negative impacts.
Explanation: It minimizes negative impacts.
Q3. Financial risk relates to:
Answer: b) Money matters
Explanation: Includes loans, losses, cash flow.
Explanation: Includes loans, losses, cash flow.
Q4. Market risk occurs due to:
Answer: a) Demand changes
Explanation: Market fluctuations affect sales.
Explanation: Market fluctuations affect sales.
Q5. Operational risk arises from:
Answer: a) Internal processes
Explanation: Includes system failures & errors.
Explanation: Includes system failures & errors.
Q6. Natural risk example:
Answer: a) Flood
Explanation: Natural disasters disrupt business.
Explanation: Natural disasters disrupt business.
Q7. Insurance helps in:
Answer: b) Risk transfer
Explanation: Insurance shifts financial loss burden.
Explanation: Insurance shifts financial loss burden.
Q8. Diversification reduces:
Answer: b) Risk
Explanation: Multiple investments spread risk.
Explanation: Multiple investments spread risk.
Q9. Risk avoidance means:
Answer: b) Eliminating risky activities
Explanation: Prevents exposure to risk.
Explanation: Prevents exposure to risk.
Q10. Risk mitigation means:
Answer: b) Reducing impact
Explanation: Steps minimize damage.
Explanation: Steps minimize damage.
Q11. SWOT helps identify:
Answer: d) All of these
Explanation: SWOT aids risk planning.
Explanation: SWOT aids risk planning.
Q12. Credit risk relates to:
Answer: a) Loan default
Explanation: Borrowers may fail repayment.
Explanation: Borrowers may fail repayment.
Q13. Legal risk arises from:
Answer: a) Lawsuits
Explanation: Legal actions cause losses.
Explanation: Legal actions cause losses.
Q14. Reputation risk affects:
Answer: a) Brand image
Explanation: Public perception impacts sales.
Explanation: Public perception impacts sales.
Q15. Risk assessment means:
Answer: a) Measuring risk
Explanation: Evaluates probability & impact.
Explanation: Evaluates probability & impact.
Q16. Contingency plan is:
Answer: a) Backup strategy
Explanation: Prepared for emergencies.
Explanation: Prepared for emergencies.
Q17. Risk monitoring means:
Answer: a) Tracking risks
Explanation: Continuous evaluation is required.
Explanation: Continuous evaluation is required.
Q18. High risk often gives:
Answer: b) High return
Explanation: Risk‑return trade‑off principle.
Explanation: Risk‑return trade‑off principle.
Q19. Safety training reduces:
Answer: a) Operational risk
Explanation: Prevents workplace accidents.
Explanation: Prevents workplace accidents.
Q20. Effective risk management ensures:
Answer: d) All of these
Explanation: Managing risk secures long‑term success.
Explanation: Managing risk secures long‑term success.
