Definition

Paying money to the government based on your company’s income or sales. Staying organized with taxes avoids surprises when tax season comes.

What to consider

  • Assess risks carefully before committing resources.
  • Develop contingency plans.
  • Balance risk with potential rewards.

Real world scenarios

  • A startup founder accepts the risk of market uncertainty when launching a new app.
  • An entrepreneur invests personal savings into a new venture despite potential setbacks.
  • A small business owner diversifies offerings to mitigate market risks.

Related terms

Entrepreneurial Finances