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

Revenue forecast:

Answer 4

a prediction of future revenue based on expected sales; this is either a judgement or based on previous sales patterns

Question 5

Cash flow:

Answer 5

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

Question 6

Sales revenue:

Answer 6

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

Question 7

Investment:

Answer 7

Putting money into a business with the intention of making a profit

Question 8

Start-up:

Answer 8

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

Question 9

Intuition:

Answer 9

Intuition: knowing something instinctively or understanding something easily without conscious thought