In which situation will an entrepreneur's decision be considered most risky?
Answer and explanation
Correct answer: Making a large investment without information and planning
A large investment commits substantial resources, so making it without market information, cost estimates, a plan, or risk assessment creates high uncertainty and possible loss. Customer feedback, expense records, and a small prototype generally reduce uncertainty before expansion. They do not remove all risk, but they are more controlled actions.
Frequently asked questions
What is the correct answer to this question?
Making a large investment without information and planning
Why is this the correct answer?
A large investment commits substantial resources, so making it without market information, cost estimates, a plan, or risk assessment creates high uncertainty and possible loss. Customer feedback, expense records, and a small prototype generally reduce uncertainty before expansion. They do not remove all risk, but they are more controlled actions.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
