Topic 4: Opportunity and Risk

How do opportunities for enterprise arise?

• Inventing a new product.

• Selling a product at a cheaper price.

• Changing needs or wants for a product.

Which of the following is NOT the cause of how enterprise opportunities can arise.

• Changes in the ability to meet needs and wants.

• Outdated in technology

• Changes in government policy.

Define the term "Opportunity".

• A time or event that makes it possible to do something.

• Something given in recognition of effort or return for something achieved.

• The chance of gaining or losing something as a result of an action taken.

"Something given in recognition of effort or return for something achieved" is a definition of which term?

• Risk

• Reward

• Opportunity

Risks can be positive or negative. Which of the following is "NOT" an example of risk?

• It is not certain to make a profit.

• Choosing the wrong pricing.

• Customer places order with full payment.

Financial risks, Economic risks, Health and Safety risks, Human Resources risk, and _____________ risks are the risk that an enterprise has to deal with.

• Population

• Environment

• Production

What is the 1st stage of risk management?

• Analyse the implications of risk.

• Identify the risks.

• Monitor and review the plan.

What is the 4th stage of risk management?

• Plan how to manage the risk.

• Decide if the risk is worth taking or not.

• Analyse the implication of risk.

How does an enterprise identify and analysis risk?

• By conducting research.

• By observing and interviewing people.

• By SWOT analysis and PEST analysis

What does T stand for in P.E.S.T?

• Technology

• Telecommunication

• Television