What is the correct meaning of taking risk in entrepreneurship?
Answer and explanation
Correct answer: Accepting possible profit and loss after careful thinking
Entrepreneurial risk means facing an uncertain outcome after assessing information, resources, alternatives, and possible consequences. A calculated decision may involve the possibility of profit or loss, but it is supported by planning and risk controls. Blind investment and starting without a plan are carelessness, while risk does not mean that loss is certain. Hence, option B is correct.
Frequently asked questions
What is the correct answer to this question?
Accepting possible profit and loss after careful thinking
Why is this the correct answer?
Entrepreneurial risk means facing an uncertain outcome after assessing information, resources, alternatives, and possible consequences. A calculated decision may involve the possibility of profit or loss, but it is supported by planning and risk controls. Blind investment and starting without a plan are carelessness, while risk does not mean that loss is certain. Hence, option B is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
