3.2.6 Flashcards
1
Q
uncertainty
A
where there is a lack of information about a situation
2
Q
risk
A
possibility of something going wrong
3
Q
what are some internal risks?
A
-workers might refuse to come to work
-fire or theft
-bad publicity
-workers leave and go to work with a competitor
4
Q
what are some external risks?
A
-new competitors
-natural disasters
-government laws
-technological change
-changes in the economy
5
Q
what are some methods of reducing risk?
A
-make a business plan
-invest in training of workers
-use experts who have specialist knowledge
–sell in different markets (diversification)
6
Q
why do all business face uncertainty?
A
because of:
-economic uncertainty
-competitors
-social changes
-changes in technology
