Risk And Reward Flashcards
1
Q
What are risks?
A
- Things that can go wrong
2
Q
When do risks occur?
A
- At every stage
- Early stages present the most risks
3
Q
What happens if risks are addressed at the development stage of a business?
A
- They can be mitigated (reduced)
- There is more chance of success
4
Q
What do risks include?
A
- Business failure
- Financial loss
- Lack of security
5
Q
What can risks be caused by?
A
- Entreprenures not knowing their market well
- Not having enough money to start a business
- Poor decision making
- Competition or goods/services not meeting the needs of customers
6
Q
What happens if the business fails or is not successful?
A
- Lose the money they have put into the business
- Any money they borrowed from other sources
- Lose possessions if the business runs up debts
- Won’t be able to pay bills
7
Q
What are rewards?
A
- Business success
- Profit
- Personal independence
