Which decision shows an entrepreneur’s ability to take calculated risk?
Answer and explanation
Correct answer: Expanding after testing a small sample and collecting feedback
Calculated risk involves gathering information, estimating possible outcomes, limiting exposure, and then deciding. A small test provides evidence about customer response before the entrepreneur commits more resources. Investing everything blindly, borrowing without analysis, or ignoring outcomes shows reckless behaviour rather than calculated risk; therefore A is correct.
Frequently asked questions
What is the correct answer to this question?
Expanding after testing a small sample and collecting feedback
Why is this the correct answer?
Calculated risk involves gathering information, estimating possible outcomes, limiting exposure, and then deciding. A small test provides evidence about customer response before the entrepreneur commits more resources. Investing everything blindly, borrowing without analysis, or ignoring outcomes shows reckless behaviour rather than calculated risk; therefore A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
