Risk in an entrepreneurial activity - Курсовая работа

THE MINISTRY OF EDUCATION AND SCIENCES OF THE RK THE INTERNATIONAL ACADEMY OF BUSINESS “ECONOMICS AND LOGISTICS” DEPARTMENT THE TERM PAPER ECONOMIC THEORY “Risk in an entrepreneurial activity” Completed by the 1st year student of “Finance” specialization F1101 Kopbayeva L.T. Checked by the senior lecturer Baitubayeva A.K. Almaty 2011 Content Introduction Chapter 1. Theoretical bases P2> P1). It is impossible to eliminate uncertainty of the future of an entrepreneurial activity, as it is an element of the objective reality. The risk is inherent in business and is an integral part of its economic life. The principle decision on accepting of the risk project depends on businessman, making the decision, on its preferences between expected return (profitability) of means put in this project and their reliability which in turn is understood as non-risk, probability of reception of incomes. Map of risk preference should be built by entrepreneur or by outside experts. It should be based on data analysis of decisions taken earlier. The consequence of risk shown up most often in the form of financial losses or the inability to obtain expected profits, the risk is not only undesirable results. In certain versions of business projects exists not only danger of not achieving the intended result, but also the probability to exceed the expected profit. This is the entrepreneurial risk, which is characterized by a combination of the possibility of achievement as unwanted results and favourable deflection from planed results. 1.2 The concept of risk business economic risk First of all, it is necessary to determine the original, basic concept of risk and its classification for further consideration of the entrepreneurial risk. The notion of risk is used in a wide range of sciences. Law sees risk in connection with its legality. Catastrophe theory applies the term to describe accidents and natural disasters. Research of risk analysis can be found in the literature on psychology, medicine, philosophy; each examination of risk is based on the subject of study of the science and, of course, relies on its own approaches and methods. This diversity of risk studies is explained by many aspects of this phenomenon. In the domestic, economic science is not essentially generally accepted theoretical principles of entrepreneurial risk, not actually developed risk assessment methods as applied to various industrial situations and types of business, there are no recommendations on ways and means of reducing and preventing risk. Although it should be noted that in recent years scientific work appeared, in which are the issues of planning, economic activity of commercial organizations, the relationship between demand and supply issues, such as: risks in modern business (authors); Rajzberg’s B.G. monograph, ABC Enterprise monograph of Pervozvansk A.A. and Pervozvansk T.N. called financial market: calculation and risk, etc. Some specific interest is comparative consideration of classical and neoclassical theory of entrepreneurial risk and economic appendix. In the study of business profit, such representatives of classical theory J. Mill, I.U. Senior recognized the percentage of entrepreneurial revenue (as share in capital), wages of businessman and a pay for risk (as compensation for the possible risk associated with business activities). Peculiarity of statistical risk is that they always carry the losses of business. The loss for entrepreneurial firms tends to mean losses for society as a whole. In compliance with the cause of the loss of statistical risks, they can be divided into the following groups: • expected losses as a result of negative actions of natural disasters (fire, water, earthquakes, hurricanes, etc.) on the assets of the firm; • expected losses due to criminal acts; • expected losses due to an adverse legislation for entrepreneurial companies (losses related with direct seizure of property or with the inability to recover compensation from the perpetrator caused by imperfection of the legislation); • expected losses caused by third persons threat of property, which leads to the forced stop actions of the main producer or consumer; • losses as a result of death, or disability of key employees, or a main owner of the business firms (because of the difficulty of the placement of personnel, as well as problems with the transfer of ownership).