T3 Risk & Reward

• Business
• Upper Secondary (Key Stage 4)
• GCSE

What are the risks that an entrepreneur might be exposed to?

What are the rewards that an entrepreneur may achieve?

What can business owners do to minimise the risk of failure?

Which type of liability exposes personal assets to business debts?

1. Corporate liability
2. Limited liability
3. Unlimited liability
4. Collective liability

In which type of liability are owners only responsible up to their investment?

1. Limited liability
2. Unlimited liability
3. Joint liability
4. Absolute liability

What type of liability has no cap on financial responsibility?

1. Shared liability
2. Limited liability
3. Unlimited liability
4. Partial liability

What are some strategies for calculating risk?

1. Avoiding all risks at all costs.
2. Research, analysis, and seeking advice from experts.
3. Guessing and hoping for the best.
4. Ignoring potential outcomes.

What is the difference between risk and calculated risk?

1. Risk is always unpredictable.
2. Calculated risk involves analysing potential outcomes.
3. Risk and calculated risk are the same thing.
4. Calculated risk is always 100% safe.

What is a potential market risk for a new business?

1. Effective cost management
2. High customer satisfaction rates
3. Loyalty of existing customers
4. Entry of a new competitor with better offerings

What is a potential financial risk for a new business?

1. Excessive marketing budget
2. Lack of capital to cover operational expenses
3. Low employee turnover rate
4. Too much customer demand

What are some ways a business can effectively use their profit? (select 2)

1. Reducing product quality
2. Donating to charity
3. Investing in new equipment
4. Expanding to new markets

How can a business utilise its profit effectively? (select 2)

1. Purchasing unnecessary assets
2. Hosting lavish events
3. Research and development
4. Rewarding employees

Complete Theme 1 Task 3 on Google Classroom

Answers