Question

1)Describe who needs information about a business and why they may need it.

2) Bella Rich is enthusiastic about starting her catering business. She feels confident that she has a great concept and can handle the day-to-day details of running a business. However, this is her first attempt at running her own business. Advise Bella on the risks associated with starting a business.

Answer 1

1) Investors and Stakeholders required information about the business. Stakeholders means persons or organisations influence by an entity. Stakeholders include customers, suppliers, government, employees etc. They required information because they connected with business either directly or indirectly. Business policies & ideas can affect them.

2) Risk in starting a business:-

Business Risk :- Business risk is the possibility a company will have lower than anticipated profits or experience a loss rather than taking a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, the overall economic climate and government regulations

Financial Risk :- Risk of lossing all money invested into the business

Social Risk :- Risk whether society will accept this idea or not. whether family & freinds will support or not.

An enterprenur can handle all the risk if he is commited and visionary and never giveup attitude. Since risk is there but return will also be there. So Bella Rich has to think positively and start the business with same enthusiastic.