What is the most accurate meaning of calculated risk in entrepreneurship?
Answer and explanation
Correct answer: Taking a decision after understanding chances of gain and loss
Calculated risk means making a decision after gathering relevant information, estimating possible benefits and losses, and considering ways to reduce harm. It is not reckless action without evidence, nor complete avoidance of risk. Copying others also ignores the particular market, resources, and conditions of one’s own venture. Hence, C correctly describes informed entrepreneurial risk-taking.
Frequently asked questions
What is the correct answer to this question?
Taking a decision after understanding chances of gain and loss
Why is this the correct answer?
Calculated risk means making a decision after gathering relevant information, estimating possible benefits and losses, and considering ways to reduce harm. It is not reckless action without evidence, nor complete avoidance of risk. Copying others also ignores the particular market, resources, and conditions of one’s own venture. Hence, C correctly describes informed entrepreneurial risk-taking.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
