1.1.2 Risks and rewards

Question 1

Names all the risks

Answer 1

-Financial Loss
-Lack of Security
-Business Faliure

Question 2

Names all the rewards

Answer 2

-Profit
-Business success
-Independence

Question 3

Why is financial loss a risk

Answer 3

-Because if the entrepreneur fails then they lose the profit the used to start the business

Question 4

Why is business success a Reward

Answer 4

-Because if the business is make high sales and gaining lots of profit this could be a reward

Question 5

The Impact Of Risk On Business Activity (3 Marker)

Answer 5

An Entrepreneur May Take a Financial Risk When Starting a Business (P) This is Because a New Business Will Need Financial Investment To Start-Up (S) If a Business Fails Then The Entrepreneur Could Lose This Money (S)

Question 6

Impact Of Reducing Risk On Business Activity (6 Marker)

Answer 6

One Way That an Entrepreneur Could Reduce Risk Is To Carry Market Research (P) Market Research Will Allow The Entrepreneur To Understand The Needs Of The Customer (S) Therefore The Entrepreneur Can Develop Product Or Service That Customers Want And Are More Likely To Buy (S) As a Result Customer Satisfaction Will Increase (S)

Question 7

The Impact Of Rewards On independence (6 Marker)

Answer 7

One reward for business activity is independence (P) This is because the entrepreneur gets to be their own boss (S) Therefore they can choose things like their own working hours (S) As a result they are likely to be more motivated (S)