What term describes opportunity costs that adversely affect an organization's growth or profits?

The term that describes opportunity costs that adversely affect an organization's growth or profits is business risks. Business risks refer to the potential for losses or unfavorable outcomes that can arise from various factors in the business environment. These risks are closely tied to the decisions made by an organization, particularly in terms of resource allocation. When a company makes a choice to pursue one opportunity over another, the potential benefits foregone from the opportunity not chosen represent an opportunity cost. If these missed opportunities result in lower growth or reduced profits, it illustrates the impact of business risks.

In a broader context, business risks can encompass various elements including competition, market fluctuations, and strategic decisions. Understanding these risks is paramount for effective management, as they inform how resources should be allocated to maximize growth and profitability while minimizing adverse effects on the organization.