1.1 Risk and Reward

**** can be defined as a situation

involving exposure to danger

What risks might entrepreneurs be exposed to in the

business world?

• Financial

• Lots of personal time

• Reputational

• Competition

What is a calculated risk?

• where a chance of exposure to loss or injury is undertaken

  having looked at the disadvantages of taking that risk

• where a chance of exposure to loss or injury is undertaken

  having carefully assessed the advantages and disadvantages of taking that risk

• where a chance of exposure to loss or injury is undertaken

  having completely assessed the advantages and disadvantages of taking any risk

Successful entrepreneurs will see the

opportunity offered by a _______ risk,

and know when to take that risk

• small

• possible

• potential

In the first year of trading, how many business fail to survive approximately?

• 25

• 5

• 10

What is the most important thing to a new business

• Credit

• Cash

• Orders

• Time

Limited liability means owners of business?

• they are personally liable for the business debts

• they are not personally liable for the business debts

• they are partially liable for the business debts

Who are most likely to suffer when a limited company fails?

• investors

• supplier

• employees

• Owners

Owners of small businesses such as sole traders and partnerships are _____ responsible for all the debts of the business

• personally

• partially

• not

If a sole traders business fails, could he lose his house to pay for his debts?

• Yes

• No