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What is the most accurate difference between confidence and overconfidence in an entrepreneur?

Answer and explanation

Correct answer: Confidence is supported by preparation, while overconfidence may ignore risks and limitations

Healthy confidence is based on knowledge, preparation, experience, and a realistic assessment of one’s abilities. It helps an entrepreneur take decisions and face challenges without denying uncertainty. Overconfidence is an exaggerated belief in success that may cause a person to underestimate competition, costs, weaknesses, or risks. Thus, confidence supports careful action, whereas overconfidence can produce careless plans and poor decisions.

Related tags

Entrepreneurial-SkillsRisk-AssessmentSelf-ConfidenceEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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