Which entrepreneurial quality is shown when an entrepreneur studies market information, estimates possible profit and loss, and then decides to launch a new product?
Answer and explanation
Correct answer: Calculated risk-taking
The entrepreneur is taking a calculated risk because the decision follows market research and an estimate of possible gains and losses. Calculated risk does not mean certainty or absence of danger; it means considering evidence, alternatives, and likely consequences before acting. Depending completely on others, avoiding decisions, or ignoring market information describes the opposite behaviour.
Frequently asked questions
What is the correct answer to this question?
Calculated risk-taking
Why is this the correct answer?
The entrepreneur is taking a calculated risk because the decision follows market research and an estimate of possible gains and losses. Calculated risk does not mean certainty or absence of danger; it means considering evidence, alternatives, and likely consequences before acting. Depending completely on others, avoiding decisions, or ignoring market information describes the opposite behaviour.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
