Which of the following business risks would an insurance firm not cover for an entrepreneur?
Answer Details
An insurance firm would not cover the business risk of a change in consumers' taste for an entrepreneur. This is because changes in consumer preferences are considered a normal and expected risk of doing business, and insurance companies typically only cover risks that are accidental or unexpected, such as theft, fire, or loss of goods in transit. Essentially, insurance is designed to help businesses mitigate risks that are outside of their control, but not those that are inherent to the market they operate in.