Difference between revisions of "Introduction to entrepreneurship/IENT101/Nature/Risk"
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* [https://www.inc.com/john-brandon/here-s-why-the-risk-reward-model-works-so-well.html/ Here's why the risk-reward model works so well] | * [https://www.inc.com/john-brandon/here-s-why-the-risk-reward-model-works-so-well.html/ Here's why the risk-reward model works so well] | ||
| − | * [https://www.entrepreneur.com/article/243061 4 examples of risks leading to reward] | + | * [https://www.entrepreneur.com/article/243061 4 examples of risks leading to reward] entrepreneur.com 21 March 2015 |
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Revision as of 00:51, 3 October 2018
Anyone thinking about starting a new business or venture of any kind needs to think about possible risks and reward.
- Risk can be defined as the chance of loss. Generally, the higher the risk, the higher the potential for loss. [1]
- A Reward is a positive incentive that makes people better off. [2]
There is usually a direct relationship between the risk of a loss and the expected rate of return. The higher the risk of loss, the greater the potential reward. Conversely, the lower the risk of loss, the lower the potential reward.
References
