Risk and Reward

Question 1

What are the three types of risk a buisness can be exposed to?

Answer 1

1. Financial loss.
2. Lack of security.
3. Buisness failure.

Question 2

What is financial loss?

Answer 2

A lot of money is invested in a buisness, wether it is borrowed or ones own. If the buisness does not produce enough profit, it results in a loss of money and the buisness will shut down.

Question 3

What is lack of security?

Answer 3

Setting u[ a buisness usually means dropping ones old job and with it the security of a regular income.

Question 4

What is buisness failure?

Answer 4

A major reason for buisness failure is lack of profit. This