Which ONE of the following is a factor that could increase the level of risk in a business?
Select ONE answer only:
- Seasonal demand
- Having a large target market
- Having a low fixed costs
- Employing a large number of employees
- Having a unique product to sell
Explain ONE reason why running a business can involve high levels of risk.
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This multiple choice question is suitable for Business Studies KS4 & KS3 classes
The answer is 1 – Seasonal demand will be a high-risk factor for a business trying to match its revenues and costs and survive for the rest of the year. Low fixed costs are an advantage to any business, as its break-even level before it can make profits should normally be low.
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