Final answer:
1) The long-run trend in sales refers to the overall direction and pattern of sales over a significant period of time.
2) Year-to-year fluctuations in the level of sales are the variations or changes in sales from one year to another.
3) The attitude of owners toward risk can vary depending on individual preferences and the nature of the business.
Step-by-step explanation:
The long-run trend in sales refers to the overall direction and pattern of sales over a significant period of time, typically several years or more. It takes into account any consistent increase or decrease in sales over this period. For example, if a company's sales have been steadily increasing year after year, it would indicate a positive long-run trend in sales. On the other hand, if the sales have been consistently declining, it would suggest a negative long-run trend in sales.
Year-to-year fluctuations in the level of sales are the variations or changes in sales from one year to another. These fluctuations can be caused by various factors such as changes in consumer behavior, economic conditions, and industry trends. For instance, if a company experiences higher sales in one year compared to the previous year, it would indicate a positive year-to-year fluctuation in sales. Conversely, if the sales decrease from one year to the next, it would suggest a negative fluctuation.
The attitude of owners toward risk can vary depending on individual preferences and the nature of the business. Some owners may be more risk-averse, preferring to minimize risks and focus on stable, consistent growth. Others may have a higher tolerance for risk and be more willing to take chances in pursuit of higher returns. The attitude of owners toward risk can impact decision-making and the strategic direction of the business.