What is the main difference between taking risk and gambling?
Answer and explanation
Correct answer: Risk uses information and planning, gambling uses blind guessing
Entrepreneurial risk is a deliberate decision made after studying information, alternatives, resources, and possible outcomes. Loss is still possible, because planning does not guarantee success. Gambling, in contrast, mainly depends on chance or blind guessing rather than a productive business plan. Therefore, the first option correctly separates calculated risk from gambling.
Frequently asked questions
What is the correct answer to this question?
Risk uses information and planning, gambling uses blind guessing
Why is this the correct answer?
Entrepreneurial risk is a deliberate decision made after studying information, alternatives, resources, and possible outcomes. Loss is still possible, because planning does not guarantee success. Gambling, in contrast, mainly depends on chance or blind guessing rather than a productive business plan. Therefore, the first option correctly separates calculated risk from gambling.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
