Unit 2: The Risks in Business

Which word BEST describes the overall landscape of business?

• Predictable

• Basic

• Dynamic

• Forgiving

Entrepreneurs need to _____ and _____ risk to be successful.

• Identify, Build

• Evaluate, Manage

• Plan, Create

• Find, Amplify

The story of Amazon’s Jeff Bezos putting $100 million worth of toys into his company’s inventory is an example of:

• Hazardous Risk

• Strategic Risk

• Location Risk

• People Risk

Which phrase BEST describes a macro-level event?

• an economic downturn in a major industry

• a situation in which risk outweighs opportunity

• a trend that has the potential to transform an industry

• a situation with global, long-term impacts

Ahmed is planning to launch an import clothing business, but he’s concerned about how the recent rise in import taxes might affect his bottom line. What type of risk is Ahmed experiencing?

• Social and Cultural

• Technological

• Regulatory

• Locational

When _____ fluctuate, it can lead to _____.

• Prices, Inflation

• Industries, Planning

• Customers, Stakeholders

• Interest Rates, Buying

Yasmine is considering business ownership. In addition to starting her own business, how else might she acquire one?

• through self-financing

• by becoming a franchisor

• through a purchase

• through a purchaself

A franchisee is to franchisor as a _____ is to a _____.

• Customer , Client

• Renter, Landlord

• Store, Service

• Fee, Product

Garrison is a natural born inventor, and he gets great joy from coming up with novel ways of accomplishing even everyday tasks. Which kind of business would he be wise to get into?

• Chain Outlet

• Existing Business

• Franchise

• Startup

A business that used to sell sunglasses on the city sidewalk shifted its operations to 100 percent online sales as a way of mitigating the losses they experienced due to shoplifting. Which type of risk management strategy did they employ?

• Reducing Risk

• Transferring Risk

• Accepting Risk

• Creating Risk