Understanding Business Risks and Decisions

What is a key element in every business decision?

• Profit

• Risk

• Security

• Success

What must a successful entrepreneur be willing to do?

• Avoid risks at all costs

• Take risks

• Ignore market research

• Focus only on profits

What should entrepreneurs use to recognise when the level of risk is too high?

• Intuition

• Market research data

• Luck

• Competitor analysis

Which of the following is a financial risk to businesses?

• High employee turnover

• Financial loss

• Increased market share

• Product innovation

What can lead to business failure?

• High sales

• Low sales

• Strong brand identity

• Effective marketing

What is required for an entrepreneur to set up a business?

• A large team

• Money

• A physical store

• A website

What might an entrepreneur risk if the business is not profitable?

• Gaining more customers

• Losing money

• Expanding the business

• Increasing profits

What is a potential consequence of lack of security in business?

• Increased profits

• Business stability

• Business failure

• Market dominance

What might an entrepreneur have to give up to pursue their business?

• Their hobbies

• Their existing job

• Their family time

• Their education

What is essential to pay back borrowed money in a business?

• High employee turnover

• Sufficient profits

• Low production costs

• High market share