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Which of the following actions best demonstrates an entrepreneur’s ability to take calculated risks?

Answer and explanation

Correct answer: Launching a product on a small scale after assessing costs, potential demand, and possible loss

A calculated risk is considered after gathering relevant information, estimating likely benefits and losses, and preparing a way to limit damage. A small-scale launch can test demand while reducing the amount of capital exposed. Investing everything blindly is reckless, refusing all decisions is not entrepreneurial action, and copying competitors does not show analysis.

Related tags

Calculated RiskEntrepreneurshipDecision-MakingEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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