What do entrepreneurs risk when starting a business?

Prepare for the NOCTI General Management Exam. Utilize interactive flashcards and multiple-choice questions with comprehensive hints and explanations. Ace your test!

Entrepreneurs risk their time and financial resources when starting a business because launching a new venture often requires a significant investment of both. Financially, they may invest their own savings or take on debt to fund the initial stages of their business, which exposes them to the potential for loss if the business does not succeed. In addition to capital, entrepreneurs commit a considerable amount of their time to develop their business idea, build their product or service, and establish their market presence. This time investment can be extensive, often requiring long hours and sacrificing personal time.

This choice captures the multifaceted nature of risk associated with entrepreneurship, where both time and money are crucial resources that can significantly impact the success of a new business.

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