What is the main benefit of listing possible risks in a business plan?
Answer and explanation
Correct answer: It helps in timely prevention and preparation
Listing risks makes possible difficulties visible before they occur. The entrepreneur can estimate their likelihood and impact, prepare preventive measures, arrange alternatives, and decide which risks are acceptable. This improves readiness and may reduce losses, but it cannot guarantee success or eliminate uncertainty. Demand, execution, finance, and customer satisfaction still require continuous attention.
Frequently asked questions
What is the correct answer to this question?
It helps in timely prevention and preparation
Why is this the correct answer?
Listing risks makes possible difficulties visible before they occur. The entrepreneur can estimate their likelihood and impact, prepare preventive measures, arrange alternatives, and decide which risks are acceptable. This improves readiness and may reduce losses, but it cannot guarantee success or eliminate uncertainty. Demand, execution, finance, and customer satisfaction still require continuous attention.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
