INTRODUCTION TO ENTREPRENEURSHIP
ENTREPRENEURIAL PROCESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is a potential risk associated with starting a new business?
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A stable customer base
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Low startup costs
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Limited competition
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Market saturation
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Explanation:
Detailed explanation-1: -A saturated market is a scenario in which businesses aim to meet economic demand for a service or product. When there’s more of a product than there are people to buy it, businesses must compete for customers. As a result, availability for the growth of existing businesses can become limited.
Detailed explanation-2: -strategic risk-eg a competitor coming on to the market. compliance and regulatory risk-eg introduction of new rules or legislation. financial risk-eg interest rate rise on your business loan or a non-paying customer. operational risk-eg the breakdown or theft of key equipment.
There is 1 question to complete.