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1.1.2. Risk and reward GCSE Business Edexcel Flashcards | StudBud
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1.1.2. Risk and reward GCSE Business Edexcel
1.1.2. Risk and reward GCSE Business Edexcel
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1.1.2. The dynamic nature of business GCSE Business Edexcel
Flashcards
13 cards
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Questions
13
Answers
1
For many entrepreneurs, making a profit is one of the primary aims of startup businesses.
False
True
2
Problems with cash flow, debts and financial stability can threaten the survival of a business.
True
False
3
Which term is often used in business to describe the upfront investments required before a business begins trading?
Operational costs
Revenue projections
Sunk costs
Expenses
4
The income generated from the sale of goods/services is called...
Cash flow
Profit
Money
Revenue
5
Which of the following is NOT a reason for business failure?
A lack of market research
Selling in the wrong market
A lack of cash flow
Understanding customer needs
6
Which two approaches can help a business to identify and mitigate potential risks?
Conducting regular market research
Writing a detailed business plan
Neglecting market changes
Avoiding forecasting legislation changes
7
For an entrepreneur, starting a business is a risk.
False
True
8
Production issues, breakdowns in the supply chain and disruption to technology can affect how a business operates is...
Market risk
Reputational risk
Financial risk
Operational risk
9
Unexpected changes in the economy and consumer spending do not affect businesses.
False
True
10
Changes in demand, competition and consumer preferences can affect sales and profitability is...
Financial risk
Market risk
Operational risk
Reputation risk
11
Which of the following statements best describes the importance of market research?
It helps to grasp potential customer needs, preferences, & behaviors
Market research guarantees success without any risks involved
Launching a new product without market research eliminates risk
It businesses make decisions based on assumptions rather than facts
12
What is a motivating factor for individuals who choose to start their own business?
Job security and stability
Independence and being their own boss
Desire for social recognition
Avoiding hard work and responsibilities
13
What are some potential rewards that successful entrepreneurs may experience?
Financial stability and increased income
Lack of dedication and hard work
Unavoidable challenges and uncertainties
Decreased personal fulfillment and satisfaction
