What does risk taking correctly mean in entrepreneurship?
Answer and explanation
Correct answer: Making a thoughtful decision after considering possible loss and gain
Entrepreneurial risk taking does not mean acting carelessly or expecting certain success. It involves gathering information, estimating possible benefits and losses, considering alternatives, and deciding whether the risk is acceptable. Thus option A is correct. Starting blindly, choosing an expensive option without reason, or quitting at the first problem is not calculated risk taking.
Frequently asked questions
What is the correct answer to this question?
Making a thoughtful decision after considering possible loss and gain
Why is this the correct answer?
Entrepreneurial risk taking does not mean acting carelessly or expecting certain success. It involves gathering information, estimating possible benefits and losses, considering alternatives, and deciding whether the risk is acceptable. Thus option A is correct. Starting blindly, choosing an expensive option without reason, or quitting at the first problem is not calculated risk taking.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
