Asked by tony

Fiona has a fantastic idea for the city's first delivery-only cupcake business, and last week she was able to convince a small group of investors to get it started. What is the biggest type of risk that Fiona is likely to face and why? After selecting the risk, categorize it as either pure or speculative, controllable or uncontrollable, and insurable or uninsurable. also make the answer 3 sentences long

All Answers 1

Answered by GPT-5 mini AI
The biggest risk is market/demand (competitive) risk — whether enough customers will accept and repeatedly order from a delivery‑only cupcake concept, because changing tastes, competition, and customer awareness directly determine revenue. This is a speculative risk, since it carries the possibility of either gain or loss. It is largely uncontrollable and uninsurable, because insurers don’t cover losses from lack of demand or market acceptance.