What is the main difference between confidence and overconfidence in entrepreneurship?
Answer and explanation
Correct answer: Confidence is based on preparation and overconfidence ignores risks
Healthy confidence comes from knowledge, preparation, practice, and a realistic assessment of capability. It supports action while allowing attention to evidence and risk. Overconfidence creates exaggerated certainty, so warnings and possible losses may be ignored. Thus, confidence supports judgement, whereas overconfidence can distort it.
Frequently asked questions
What is the correct answer to this question?
Confidence is based on preparation and overconfidence ignores risks
Why is this the correct answer?
Healthy confidence comes from knowledge, preparation, practice, and a realistic assessment of capability. It supports action while allowing attention to evidence and risk. Overconfidence creates exaggerated certainty, so warnings and possible losses may be ignored. Thus, confidence supports judgement, whereas overconfidence can distort it.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
