risk and reward Flashcards
1
Q
What are some examples of risks?
A
business failure
financial loss
lack of security
2
Q
What are some examples of rewards?
A
business success
independence
profit
3
Q
How can risk be reduced?
A
Carry out detailed market research
Produce a business plan
Raise sufficient start up finance
4
Q
What makes some businesses riskier than others?
A
Seasonal demand, such as for ice cream.
A small market
A highly competitive market with lots of competitors
An owner who knows little about the product or market.
