Which two of the following would be a calculated risk for Keith's business?
Select two answers - Edexcel - GCSE Business - Question 19 - 2018 - Paper 1
Question 19
Which two of the following would be a calculated risk for Keith's business?
Select two answers.
A Keith has calculated that his Value Added Tax (VAT) will be £2 35... show full transcript
Worked Solution & Example Answer:Which two of the following would be a calculated risk for Keith's business?
Select two answers - Edexcel - GCSE Business - Question 19 - 2018 - Paper 1
Step 1
C There is a 40% possibility that his business will survive the first year
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Answer
This statement reflects the degree of uncertainty associated with the business's future, which is a calculated risk. A 40% chance of survival indicates that there is significant risk involved.
Step 2
E There is an 80:20 chance of Keith's business failing
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Answer
This statement also indicates a calculated risk since it explicitly mentions probabilities regarding business failure. An 80% chance of failing denotes a serious risk that has been quantified.
