Entrepreneurship & risk
AQA GCSE Business Studies revision on Entrepreneurship & risk. Aligned to the AQA GCSE Business 8132 specification. This bank has 10 practice questions on this topic.
Sample questions (3 of 10)
-
Question 1
Which of the following is a primary financial risk taken by an entrepreneur when starting a new business?
- A) Loss of personal capital
- B) Increased job security
- C) Guaranteed annual leave
- D) Reduced working hours
Show answer
Answer: Loss of personal capital
Starting a business often requires the owner to invest their own savings or take out loans. If the business fails, this capital may be lost completely, representing a significant financial risk.
-
Question 2
What is the term for the process of weighing up the potential rewards of a business venture against the possibility of failure?
Show answer
Answer: Risk assessment
Entrepreneurs must conduct a risk assessment to decide if the potential profit justifies the chance of failure. This helps them identify threats and plan strategies to minimise negative outcomes.
-
Question 3
Which of the following is a non-financial risk faced by an entrepreneur?
- A) Negative impact on personal reputation
- B) Bankruptcy
- C) Loss of profit
- D) High interest rates on debt
Show answer
Answer: Negative impact on personal reputation
While financial risks involve money, non-financial risks include factors like stress, loss of reputation, or a poor work-life balance. These can affect the entrepreneur's well-being and future career prospects regardless of the company's bank balance.
Want to test yourself on the remaining cards for this topic?
7 more questions on Entrepreneurship & risk — plus mistakes tracking and spaced repetition across the whole Business Studies spec.