Which of the following actions best demonstrates an entrepreneur’s ability to take calculated risks?
Answer and explanation
Correct answer: Launching a product on a small scale after assessing costs, potential demand, and possible loss
A calculated risk is considered after gathering relevant information, estimating likely benefits and losses, and preparing a way to limit damage. A small-scale launch can test demand while reducing the amount of capital exposed. Investing everything blindly is reckless, refusing all decisions is not entrepreneurial action, and copying competitors does not show analysis.
Frequently asked questions
What is the correct answer to this question?
Launching a product on a small scale after assessing costs, potential demand, and possible loss
Why is this the correct answer?
A calculated risk is considered after gathering relevant information, estimating likely benefits and losses, and preparing a way to limit damage. A small-scale launch can test demand while reducing the amount of capital exposed. Investing everything blindly is reckless, refusing all decisions is not entrepreneurial action, and copying competitors does not show analysis.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
