Risk & Reward (Edexcel GCSE Business)

Business failure affects businesses of all sizes and is a risk to both new and established businesses

It occurs when a business is unable to meet its financial obligations or when it cannot generate enough revenue to sustain its operations

The impact of business failure can be devastating, resulting in job losses, bankruptcy, and financial ruin for the owners and investors

This occurs due to factors such as poor financial management, economic downturns, or unexpected events such as natural disasters

The impact of financial loss can be severe, resulting in reduced profitability, reduced competitiveness, and reduced ability to invest in growth

This is a risk that businesses face in terms of data security, intellectual property theft, or physical security

A security breach can result in reputational damage, legal liability, and the loss of customer trust

This is the ultimate reward that business owners strive for

It occurs when a business meets or exceeds its objectives, such as generating revenue, achieving profitability, or expanding its operations

Profit is a measure of the success of a business

Profit enables businesses to reinvest in growth opportunities, pay dividends to shareholders, and provide financial stability to the business

This reward is often overlooked but is crucial to the success of a business

Independence allows businesses to make their own decisions rather than being subject to the demands of external stakeholders such as investors or creditors