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What do you think the results would be if you started a business where the risks outweigh the rewards? Would the chances for success be greater or less? Why?

a) Greater, because challenges lead to innovation.
b) Greater, because risks always result in higher rewards.
c) Less, because excessive risks can lead to failure.
d) Less, because taking risks guarantees success.

User Jerel
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1 Answer

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Final answer:

Starting a business with risks that outweigh the rewards generally leads to a lower chance of success, as high risk also means a greater possibility of failure. Successful entrepreneurship requires a balance of calculated risk and innovative strategy for the market to benefit from improved or new products.

Step-by-step explanation:

If you start a business where the risks outweigh the rewards, the chances for success would generally be considered less, because excessive risks can lead to failure. While challenges can indeed lead to innovation, it is not the case that risks always result in higher rewards. High risk entails the possibility of high reward, but also a greater possibility of loss, and there is no guarantee of success simply by taking risks.


The entrepreneur, as a risk taker, must balance risk with potential reward. Excessive risk can result in business failure, loss of capital, and adverse market consequences. However, a calculated risk with a sound business plan and innovation can lead to success, benefiting both the entrepreneur with monetary gains and the market with improved or new products.

User MikeP
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