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Curtiss Anaya is planning to sell kites on the beach this summer to pay for next year's school expenses. What term refers to the potential that Curtiss will lose money and waste his time and end up at the end of the summer with not enough money to cover his expenses?

1) Profit
2) Risk
3) Revenue
4) Opportunity
5) Cost

User Izabella
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1 Answer

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Final answer:

The term referring to the potential for Curtiss to lose money from his summer business is 'risk'. Risk encompasses the possibility of financial loss or the failure to meet financial goals in a business venture.

Step-by-step explanation:

The term that refers to the potential that Curtiss Anaya will lose money and waste his time, ending up with not enough to cover his expenses after selling kites on the beach, is risk. Risk in a business context is the possibility of a loss or other adverse event that has the potential to interfere with an organization's ability to achieve its financial goals. In Curtiss's scenario, he faces the risk that his revenue from selling kites might not be sufficient to cover all his costs and desired profit for school expenses.

Decisions in such scenarios also involve considering variable and fixed costs, determining if operating short term at a loss is feasible, and understanding when to exit the business, which is typically when the firm can no longer cover its variable costs or when losses are sustained in the long run.

User Saritha
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