What is the correct meaning of taking risk in entrepreneurship?
Answer and explanation
Correct answer: Taking informed decisions and being prepared for outcomes
Entrepreneurial risk means accepting uncertainty after studying information, alternatives, resources and possible outcomes. A responsible entrepreneur estimates likely gains and losses and prepares for adverse results; risk is not blind gambling. Option B correctly describes informed risk-taking. The other choices confuse risk with carelessness, isolation or unrealistic expectation of profit only.
Frequently asked questions
What is the correct answer to this question?
Taking informed decisions and being prepared for outcomes
Why is this the correct answer?
Entrepreneurial risk means accepting uncertainty after studying information, alternatives, resources and possible outcomes. A responsible entrepreneur estimates likely gains and losses and prepares for adverse results; risk is not blind gambling. Option B correctly describes informed risk-taking. The other choices confuse risk with carelessness, isolation or unrealistic expectation of profit only.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
