More People Are Discouraged to Test Their Skills as Entrepreneurs

question 7

True/False

More people are discouraged to test their skills as entrepreneurs because the failure rate among small businesses has been increasing in recent years.

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Definitions:

Risk Characteristics

Features that define the vulnerability of an investment's return, including volatility, market risk, and credit risk.

Systematic Risk

The risk inherent to the entire market or market segment, also known as "market risk," which cannot be reduced through diversification.

Unsystematic Risk

The risk of price change in a company's stock due to company-specific events, distinguishable from market-wide risk.

Business-specific Risks

Refers to the uncertainties or potential financial losses that are directly related to the operations and environment of a particular company or industry.