Question

Victoria and Amanda were roommates in university. They got along very well and decided that when they graduated they would set up a business together selling life insurance. Amanda is the extrovert and has always been a great salesperson in previous jobs. Victoria is more of an introvert so has more trouble selling but is very meticulous and accurate when it comes to paperwork. They feel these contrasting skills will make a great team. They study together to pass the Life License Qualification Exam (LLQP). Unfortunately, Victoria passes with ease but Amanda, who had partied the night before instead of studying, failed the exam. They decide to go ahead with their plans anyway. Amanda is busy bringing in lots of clients and Victoria completes and signs the applications. Two years later, Amanda has yet to get around to rewriting the exam. They are making a good living and they both like the division of labour. What risk are they taking?

a) Victoria risks losing her license and Amanda may never be able to get her license when she does pass the LLQP.
b) If Amanda and Victoria have a falling out, Amanda will have no recourse if Victoria decides not to pay her what she is owed.
c) If Amanda decides to leave the business and set up on her own, Victoria has had no experience selling and attracting clients.
d) Because Amanda is not licensed, she may make a serious mistake, due to her lack of knowledge, that could lose the business money.

Answer 1

The risk that Victoria and Amanda are taking is that Amanda, who is not licensed, may make a serious mistake that could cost the business money.

Step-by-step explanation:

The risk that Victoria and Amanda are taking is d) Because Amanda is not licensed, she may make a serious mistake, due to her lack of knowledge, that could lose the business money.