1.2 Entrepreneurship: Risks and Rewards (HW 3)

What is one of the common risks of starting a business?

• Financial loss

• Guaranteed profit

• Unlimited security

• Instant success

According to the text, what percentage of small businesses fail within the first year?

• 50%

• 30%

• 20%

• 10%

What is a significant risk mentioned when setting up your own business?

• Unlimited growth

• Guaranteed profit

• Lack of security

• Instant success

What is one of the rewards of a successful business?

• Financial loss

• Lack of security

• Profit

• Business failure

What is a key factor in minimizing business risks?

• Taking uncalculated risks

• Avoiding financial planning

• Ignoring market research

• Proper research and good cash management

What is one of the rewards of entrepreneurship mentioned in the text?

• Lack of independence

• No financial risk

• Guaranteed success

• Independence

What is the estimated value of Tesla at the time of recording?

• 600 billion

• 100 billion

• 200 billion

• 400 billion

What was Elon Musk's first major financial success?

• Selling Tesla

• Selling his first company for 300 million dollars

• Starting SpaceX

• Working in a lumber mill

What is one of the main reasons people start their own business despite the risks?

• Guaranteed employment

• Unlimited security

• Potential for high rewards

• No need for hard work

What is a major reason for business failure according to the text?

• Too many customers

• Excessive profits

• Lack of revenue and cash flow

• Healthy cash flow