Taking A Calculated Risk - Unit 1 Flashcards
1
Q
What is taking a calculated risk?
A
Putting a numerical value or probability on a risk and the likelihood of it coming true.
2
Q
Name 3 different examples of a calculated risk…
A
- Ratio - 50 : 50 chance of an advert’s success
- Chance - 1 in 3 change of a business failing
- % - 10% of customers will return products
They are mostly about the business failing/surviving
3
Q
Making mistake is important because…
A
Entrepreneurs often have to fail before they learn how to be successful. It is an important part of developing a business as they will learn from their mistakes and become better at calculated risk.
4
Q
Risk can be calculated by identifying and comparing …. (2)
A
Upsides and downsides
