Risk and reward (Edexcel GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What is the relationship between risk & reward in business opportunities?
What is the relationship between risk & reward in business opportunities?
Higher rewards = greater risks
What 2 factors must be considered when calculating business risk?
What 2 factors must be considered when calculating business risk?
Likelihood & severity of negative events
Which reward includes seeing products grow in popularity & gaining recognition?
Which reward includes seeing products grow in popularity & gaining recognition?
Personal satisfaction
How do successful businesses generate financial profit?
How do successful businesses generate financial profit?
By earning more than they spend over time
What independence benefit do entrepreneurs value?
What independence benefit do entrepreneurs value?
Making own decisions & choosing schedule
What does unlimited liability mean for business owners?
What does unlimited liability mean for business owners?
Personally responsible for all debts
What security do business owners lack compared to employees?
What security do business owners lack compared to employees?
Guaranteed income & benefits like sick pay
How does market research help reduce business risk?
How does market research help reduce business risk?
Helps make better decisions & identify opportunities
What should a detailed business plan include?
What should a detailed business plan include?
Financial projections, marketing & operations
Why do seasonal businesses like ice cream vendors face greater risk?
Why do seasonal businesses like ice cream vendors face greater risk?
Off-peak periods may not cover expenses
Why are small target markets riskier for businesses?
Why are small target markets riskier for businesses?
Vulnerable if customers change preferences
How does limited knowledge increase business risk?
How does limited knowledge increase business risk?
Leads to poor decisions harming success