What is the difference between uncertainty and risk in entrepreneurship?
Answer and explanation
Correct answer: Risk can be estimated to some extent, while uncertainty is unclear
Risk refers to a situation in which possible outcomes and their likelihood can be estimated to some degree using available information. Uncertainty is less measurable because the outcomes or probabilities are not sufficiently known. Neither guarantees profit or eliminates loss, so option A gives the useful distinction for entrepreneurial decision-making.
Frequently asked questions
What is the correct answer to this question?
Risk can be estimated to some extent, while uncertainty is unclear
Why is this the correct answer?
Risk refers to a situation in which possible outcomes and their likelihood can be estimated to some degree using available information. Uncertainty is less measurable because the outcomes or probabilities are not sufficiently known. Neither guarantees profit or eliminates loss, so option A gives the useful distinction for entrepreneurial decision-making.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
