INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A person who spots an opportunity to provide goods or services to customers in order to make a profit
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The process/activities by which new businesses are formed in order to offer products and services in a market
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This is the possibility that the business will have a lower than expected profit or a loss
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Check it satisfies a customer need = market research
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Detailed explanation-1: -Business risk is the possibilities a company will have lower than anticipated profits or experience a loss rather than taking a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, and the overall economic climate and government regulations.
Detailed explanation-2: -A risk, in a business context, is anything that threatens an organization’s ability to generate profits at its target levels; in the long term, risks can threaten an organization’s sustainability.
Detailed explanation-3: -Definition: Risk implies future uncertainty about deviation from expected earnings or expected outcome. Risk measures the uncertainty that an investor is willing to take to realize a gain from an investment. Description: Risks are of different types and originate from different situations.
Detailed explanation-4: -Financial risk is the possibility of losing money on an investment or business venture. Some more common and distinct financial risks include credit risk, liquidity risk, and operational risk. Financial risk is a type of danger that can result in the loss of capital to interested parties.
Detailed explanation-5: -Business risk is defined as the possibility of occurrence of any unfavourable event that has the potential to minimise gains and maximise loss of a business.