1.1.2 risk and reward

Question 1

what is a business failure?

Answer 1

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

Question 2

what is the chance of failure in a new start up?

Answer 2

20% of small businesses fail in their first year
30% of small business fail in their second year
50% of small businesses fail after five years in business
70% of small business owners fail in their 10th year in business.

Question 3

financial risks

Answer 3

Starting a business can be a financial risk for the owner

Question 4

lack of securirty

Answer 4

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

Question 5

business rewards

Answer 5

A business reward is a benefit that it brings to the owner e.g. better working conditions

Question 6

business success

Answer 6

The rewards of a good business is success

Question 7

independance

Answer 7

Being your own boss means you get to make the major decisions in the business