1.1.2 Risk and Reward

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All 13 cards in this set

Which phrase best defines business risk?: exposure to danger for business
What is a calculated risk?: acceptance of possible loss
Why do entrepreneurs take calculated risks?: seeking potential business rewards
Which option is a main business risk?: financial loss from insufficient cash
Which example best shows lack of security?: leaving a steady job for a start-up
What describes financial loss for a business?: business lacks cash to cover costs
What does the phrase 'cash is king' mean?: sufficient cash needed for operations
Which best describes business failure?: unable to meet debts or trade
Which is a common cause of business failure?: lack of customer demand
Which is an external factor that can worsen failure?: economic slowdown affecting sales
How can technology changes affect businesses?: create new types of risk
Who is most affected when a limited liability company fails?: investors, suppliers, and employees
What happens under unlimited liability?: owners risk losing personal assets

Round complete