1.1.2 Risk and Reward

Question 1

What does calculated risk mean?

Answer 1

The porbability of a negative event occuring (e.g. 50% businesses fail in the first year)

Question 2

What are the potential rewards of an entrepreneur?

Answer 2

Financial gain
Independence
Business success
Sense of fulfillment

Question 2

What are the potenial negative consequences of an entrepreneur?

Answer 2

Financial loss
Business failure
Lack of security

Question 3

What is the advantage of setting up online rather than opening a physical shop?

Answer 3

Wider target market
Convenience

Question 4

What is the disadvantage of setting up online rather than opening a physical shop?

Answer 4

Competition online (e.g. Amazon)
Website maintenence
Loss of customer experience

Question 5

What can an entrepreneur do to reduce risk of failure?

Answer 5

Market research
Make a business plan
Be aware of potential riskks and try to mitigate them