1.1.2 risk and reward

Question 1

Risk:

Answer 1

Risk: the possibility that an enterprise will have lower than anticipated profits or experience a loss

Question 2

Financial reward:

Answer 2

Financial reward: the money that an entrepreneur or investor receives when a business succeeds

Question 3

Market research:

Answer 3

the process of gathering information about the market and customers’ needs and wants in order to help inform business decisions, including product design and marketing

Question 4

Cash flow:

Answer 4

Cash flow: The amount of money coming in and going out of the business and the timing of this movement.

Question 5

Sales revenue:

Answer 5

The amount of money that comes in from. A business sales

Question 6

Start-up:

Answer 6

a new business, usually with only a small number of employees- perhaps only one

Question 7

rewards of being your own manager

Answer 7

Being your own boss means you get to make the major decisions in
the business
Many people would like to have this degree of control in their
working lives, which motivates them to start their own business

Question 8

what is profit?

Answer 8

Profit = Total revenue – Total
costs