Risk and Reward

Question 1

what makes an entrepreneur successful?

Answer 1

the ability to make risks and recognising when one risk is too high by using market research data

Question 2

what are the three types of risk?

Answer 2

• financial loss
• lack of security
• business failure

Question 3

describe financial loss

Answer 3

the money used to start up a business is not replaced by he profits

Question 4

describe lack of security

Answer 4

entrepreneurs often give up their current jobs along with the security of a regular income, they also have to work long and irregular hours

Question 5

what are three causes of poor revenue?

Answer 5

• lack of market research
• lack of raw materials
• poor management

Question 6

what are three ways to minimise risk?

Answer 6

• market research to know what customers want
• business plans to identify potential problems
• ensure there are sufficient funds

Question 7

what are the three main rewards of starting a businness?

Answer 7

• profit
• success
• independence

Question 8

what is profit?

Answer 8

it is often what drives people to start a business as it is what keeps it alive

Question 9

what is business success?

Answer 9

there are different types of success however it could be the business growing, good reputation, business awards, becoming a well-known entrepreneur

Question 10

what is independence?

Answer 10

wanting to do something that interests you and not working for someone else, being able to make your own decisions