International General Certificate of Secondary Education (IGCSE) Business Studies Practice Exam

'Business risk' is accurately described as the possibility of financial loss or failure in a business due to various factors. This encompasses a wide range of uncertainties that can affect a company's ability to achieve its objectives, including market fluctuations, changes in consumer preferences, competition, economic downturns, and operational challenges. Recognizing and understanding these risks allows businesses to engage in strategic planning and risk management, helping them to mitigate potential losses and enhance their chances of long-term success.

The other options do not align with the definition of business risk. The notion of guaranteed success does not encompass the inherent uncertainties faced by any business venture, while securing investments is a separate financial activity that doesn’t define risk itself. Lastly, not meeting customer demands pertains specifically to operational challenges and may lead to losses, but it does not encapsulate the broader spectrum of risks that could affect a business. This is why identifying business risk involves a more comprehensive understanding of potential threats to financial stability.