Business Assignment Answers. Mid Term Exam consists of 4 Questions

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Business Assignment Answers
Question 1
Risks are the most common causes of uncertainty in any business. Most businesses today have elaborate risk management to alleviate these uncertainties. Risk identification is the first stage of implementing a risk management plan. Risk identification is a very important step as it helps you know about potential risks to your business beforehand. Knowing the potential risks in advance allows you to develop a suitable risk management strategy to avert the risk or to help the business bounce back in the event the risk occurs (Powell, Mustafee, Chen, and Hammond 550).
The risk identification process involves understanding the risk to develop an appropriate mitigation plan. Understanding a risk means that one knows its potential of occurring, its potential impact and the appropriate remedy in case the risks takes place. This knowledge is crucial for the future planning of any business. Additionally, identifying potential risks in advance aids you to accurately define your business objectives for the future (Mustafee, Chen, and Hammond 550).
Question 2
The business structure is the means by which an organization disseminates information, assigns responsibilities and adjusts to change. In other words, business structure defines the extent of acceptable behavior within a business, its hierarchy of authority and accountability as well as how the organization relates to its external environment (Tucker, Lowman and Marino 261).
Structuring a business is very important for its growth. The benefits of an effective business structure include effective internal communication, effective decision making, unparalleled customer service and a smooth-running business among others. A dynamic and effective business structure enables the business to cope with the dynamic environment of the restoration industry. Maintaining a lean and productive business structure, therefore, allows an organization to adapt and thrive in changing environments (Tucker, Lowman and Marino 261).
Question 3
Despite its many merits, global trade also comes with various risks that act as its drawbacks. Today, the biggest threats to global trade are no longer financial and economic crises. According to ...