Exam technique: rewards and drawbacks

A reward or drawback earns marks when you name something that happens to the entrepreneur because they took the risk, tie it to the business in the case, and explain the effect on them.

Valid answers

A drawback must be a consequence for the entrepreneur, not a task in setting up the business. For example, ordering stock is a task; being left with boxes of unsold stock you have already paid for is a financial drawback, because you lose the money you spent. A general business problem such as a poor location is not enough on its own unless you say what it does to the owner, such as reduced income or worry. Costs and available finance are barriers to taking the risk, not consequences of it.

If asked for two rewards or two drawbacks, make them genuinely different. Stress and worry are the same idea, so they would not count as two. Pick from the four reward categories (financial, independence, self-satisfaction, making a difference) or the four drawback categories (financial, health and wellbeing, work-life balance, personal relationships). No marks are given for saying a business is popular or well known as a reward.

Application and analysis

Application means tying the point to the scenario. Use the business name and a detail. If the case is about Hassan's late-night taxi service, do not just say he may be stressed; say Hassan may feel stressed because late-night calls leave him exhausted. Analysis means saying what happens as a result: this could make him less able to drive safely, so he may lose customers.

Saying only that the business might fail is not a drawback. Show the consequence for the individual, such as having to sell equipment, owing money to a supplier, feeling overwhelmed, or tension with a business partner.