Marketing Essentials

Section 1: Risk Management for Business

After You Read Online Action

Key Terms and Concepts

1. Product obsolescence poses an economic risk because new products are being developed and many businesses depend on marketing the latest trend. If the products are not sold before they become obsolete, prices have to be reduced.
2. Possible answers include floods, tornadoes, hurricanes, fires, lightning, droughts, earthquakes, terrorism, power outages, arson, war, and unexpected changes in normal weather conditions.
3. Human risks are caused by human mistakes, dishonesty as well as the unpredictability of customers, employees, or a failure to maintain a safe work environment.

Academic Skills

4. Price without shoplifting: $28.79; $29.99 X .04 = $1.20; $29.99 - $1.20 = $28.79
5. Students should be able to identify the cause and effect of a company's bankruptcy.