Risk/reward

• What is the main topic covered in the lesson?

  Risk and reward in business
• What is a business risk?

  Possibility of lower profits or losses
• What does business failure mean?

  Company terminates operations due to losses
• What might happen if a company cannot service its debt?

  It might file for bankruptcy
• Why do businesses fail according to the lesson?

  They lack a constructive future plan
• Why is it important for businesses to stay updated with trends?

  To avoid their products going out of date
• What happened to Blockbuster in relation to Netflix?

  Failed to take the Netflix offer
• What is one reason businesses fail?

  Lack of a business plan
• How can poor cash flow management affect a business?

  It can lead to bankruptcy
• What does "unhappy employees" indicate for a business?

  It can lead to poor performance
• Why is resistance to change a problem for businesses?

  It prevents adaptation to market needs
• What percentage of new businesses survive beyond five years?

  Less than half
• What are three top reasons for startup business failure?

  UK tax system, bank lending, running costs
• Why is market research important for new businesses?

  To understand the market they enter
• What can insufficient financing lead to for a business?

  Failure to execute big plans
• How can bad location affect a business?

  It can limit customer access
• What is a common mistake for new startups?

  Expanding too quickly
• What is financial risk in business?

  Risk of losing personal assets
• What does unlimited liability mean for business owners?

  Personal assets can be seized for debts
• What does lack of security mean for entrepreneurs?

  No guarantee of job security or profit
• What is a potential reward for taking business risks?

  Becoming your own boss
• What are financial rewards in a business?

  Salary, bonuses, and allowances
• What are non-financial rewards for employees?

  Recognition and training opportunities
• What does success in business mean?

  Awards, fame, and growth
• What is a major advantage of owning a business?

  Keeping all profits made
• What is a disadvantage of having a business partner?

  Sharing profits and risks
• Why do people start their own businesses?

  To have control over their work lives
• What are the main points covered in the lesson?

  • Definition of risk and reward in business
  • Reasons for business failure
  • Importance of market research
  • Financial risks and rewards
  • Non-financial rewards for employees
• What are the causes of business failure?

  • Lack of a business plan
  • Poor cash flow management
  • Insufficient operations
  • Lack of strong leadership
  • Resistance to change
  • Outdated technology
• What are the financial and non-financial rewards of owning a business?

  Financial rewards:

  • Salary
  • Performance bonuses
  • Allowances

  
  

  Non-financial rewards:

  • Recognition
  • Training opportunities
  • Job satisfaction
• What should entrepreneurs consider before starting a business?

  • UK tax system
  • Bank lending options
  • Cost of running a business
  • Market research