Difference between revisions of "Introduction to entrepreneurship/IENT101/Nature/Risk"
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| − | + | 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. | ||
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| + | * A Reward is a positive incentive that makes people better off. | ||
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| + | 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 | ||
Revision as of 23:15, 2 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.
- A Reward is a positive incentive that makes people better off.
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
