ENTREPRENEURIAL PLANNING
BUSINESS PLAN DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Prospective lenders and investors will want to know what risks your business faces and how you plan to deal with them.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Some common measurements of risk include standard deviation, Sharpe ratio, beta, value at risk (VaR), conditional value at risk (CVaR), and R-squared.
Detailed explanation-2: -Entrepreneurs face multiple risks such as bankruptcy, financial risk, competitive risks, environmental risks, reputational risks, and political and economic risks. Entrepreneurs must plan wisely in terms of budgeting and show investors that they are considering risks by creating a realistic business plan.
Detailed explanation-3: -Prioritize. Buy Insurance. Limit Liability. Implement a Quality Assurance Program. Limit High-Risk Customers. Control Growth. Appoint a Risk Management Team.
There is 1 question to complete.