Risk and Rewards
Dynamic means ever changing.
Obsolete means it is no longer relevant.
A good is a tangible product that can be used and stored.
Entrepreneurs are those who take risks for potential
rewards.
The main 3 rewards to know at GCSE.
Profit.
Business success.
Independance.
The main 3 risks to know at GCSE.
Financial loss.
Lack of security.
Business failure.
An entrepreneur is someone who takes on the risk of a business activty to gain the rewards.
A calculate risk means doing the math, before spending any mpney towards starting a business.
In order for a business to make a profit, you need to cover all the business costs.
Business Rewards
Seeing your business becoming a success is a great personal reward.
Profits!! You could earn a high amount of profit enabling you to increase your standard of living and quality of life.
Independence. As your own boss you get to choose what you do from day-to-day, and what direction the business goes in.
Fame/Reconition. One possible reward is fame and recognition for owning a successful business.
Business Risks
Financial Loss - this means that you recieve less from your salest hen it costs to make the good or service.
When businesses lose money it can lead to a reduced standard of living and quality of life.
Business Failure- this means that business fails and is nolonger able to provide you with a standard of living.
Lack of security- this means refers to the absence of guaranteed income, benefits, or a steady salary when starting or running a business. Lack of security- can also refer to data breaches. This is a risk that businesses face in terms of data security, intellectual property theft, or physical security. A security breach can result in reputational damage, legal liability, and the loss of customer trust.
Non Financial-Rewards
Independence
Sense of satisfaction
Building something
Being in control
Receiving good publicity
Getting great feedback
Flexible working hours
Employing people
Becoming Famous!
Non-Financial Risks
Pressure
Lack of security
Sense of failure
Responsibility for others
No holidays
Irregular hours
Impact on family / social life
BLT
B- Because/ point
L- Leading to… /That means that
T- Therefore/As a result