1.1.2 - Risk And Reward

Question 1

Name 3 impacts of reward on a business:

Answer 1

• Profit
  
  • Salaries
  • Income
• Business success
• Independence

Question 2

The impact of risk on a business:

Answer 2

• Business failure
• Financial loss
  - If a sole trader
  - Loss of personal belongings due to unlimited liability
• Lack of security

Question 3

How to reduce risk in a business

Answer 3

• Insurance
• Create a business plan
• Invest a lot of time + money in market research