What should an entrepreneur do when facing risk and uncertainty?
Answer and explanation
Correct answer: Assess risks and plan carefully
Risk management begins with identifying possible threats, gathering relevant information, estimating likelihood and impact, and preparing ways to reduce or handle them. An entrepreneur can then make a calculated decision and review it as conditions change. Acting without information is careless, avoiding every risk may block opportunity, and misleading customers is unethical and harmful.
Frequently asked questions
What is the correct answer to this question?
Assess risks and plan carefully
Why is this the correct answer?
Risk management begins with identifying possible threats, gathering relevant information, estimating likelihood and impact, and preparing ways to reduce or handle them. An entrepreneur can then make a calculated decision and review it as conditions change. Acting without information is careless, avoiding every risk may block opportunity, and misleading customers is unethical and harmful.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
