1.1.2 risk and reward Flashcards

1
Q

Business
failure

A

If a business fails to plan for the
future it may risk losing out to
competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the chance of failure in
a new start-up?

A

20% of small businesses fail in their
first year
30% of small business fail in their
second year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Financial risks

A

The owner may put their own
cash and other assets (e.g. a
van) into a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Lack of security

A

If an entrepreneur has a
regular job, and they decide
to leave that job to open
their own business this is a
huge risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Definition: Business rewards

A

Not everyone defines reward the same way. For
some it might be seeing a new venture grow and
succeed. For others it may be conquering the
unknown and striking out on their own

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Business success

A

This may mean; awards,
fame, survival, growth or
making more money than
they would working for
someone else

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Keep all the profit

A

A reward of setting up your own
business is you get to keep all
the profit that the business
makes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Independence

A

A reward of setting up your own business is that you could be your
own boss
Being your own boss means you get to make the major decisions in
the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly