Can you assist me?

Question

Can anyone explain and give some ADVANTAGES as to why a business may be successful in undertaking risks rather than considering good management or business efficiency?

Note: This has to do with return on capital employed ratios, comparing capital invested and profits. The higher the ratio, the greater the return on capital invested in the business.

Answer 1

Risk is the basic element of business. When you invest, be it in stocks, real estates, or open a business, you are putting that capital "at risk", which simply means that there is no guarantee that your investment will reap rewards.

Good management and business efficiency along with committed and dedicated employees, will assure, somewhat that the business, and your investment grows.