risk and reward:

what is a reward in business?

is a benefit that it brings to the owner

Name the three impacts of business reward:

what can business success do for a business?

• could start a family legacy

• financial benefits

• better work autonomy

• better work challenge

what does a family legacy mean?

starting a business you can leave to your kids

what does better work autonomy mean?

make your own decisions

what does independence mean for a business?

• be their own boss (which means they make major decisions in the business)

• owner can change business if they like

• degree of control in working their lives (which motivates them to start a business)

what could profit mean for a business?

• entrepreneur gets to keep all profit

• if you’re a business partner you share profit

• equipment might need replacing and may need to put profit back into the business

what does entrepreneur mean?

a person who is prepared to take a risk in the hope of gaining a reward

What is business risk?

is one that may lead to failure to achieve the goals of the organisation

Name the three impacts of business risk:

what is business failure?

when a business ceases to trade, or when they don’t trade in a profitable way or when they make a terrible decision

what are the impacts of financial loss?

• owner may put their own cash and other assets into the business

• starting a business can be a financial risk for the owner

• if business is a sole trade or partnership they have unlimited liability

what does lack of security mean for a business?

if an entrepreneur has a regular job and decide to leave that job to open their own business it’s a huge risk