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In which situation can an entrepreneur’s risk be reduced?

Answer and explanation

Correct answer: By collecting information and starting small

Market information reduces uncertainty about customers, competitors, costs, and possible obstacles. Starting small allows an entrepreneur to test the idea, learn from results, and limit the size of a possible loss. An unplanned large loan, ignoring customer needs, and keeping no records increase uncertainty and financial exposure. Therefore, option A gives two practical methods of reducing risk.

Related tags

Risk-ReductionMarket-ResearchBusiness RiskBusinessTrade And CommerceBusiness Trade And CommerceBusiness StudiesClass 11 Mcq

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