Which option shows balanced risk-taking by an entrepreneur?
Answer and explanation
Correct answer: Trying something new with information, planning, and limited investment
Balanced risk-taking combines initiative with evidence and safeguards. The entrepreneur studies the opportunity, plans the trial, limits the amount committed, and observes results before scaling up. This does not remove uncertainty, but it keeps a possible loss manageable and creates learning. Investing all savings, expanding without demand knowledge, or blindly borrowing and copying shows speculation rather than informed entrepreneurial risk-taking.
Frequently asked questions
What is the correct answer to this question?
Trying something new with information, planning, and limited investment
Why is this the correct answer?
Balanced risk-taking combines initiative with evidence and safeguards. The entrepreneur studies the opportunity, plans the trial, limits the amount committed, and observes results before scaling up. This does not remove uncertainty, but it keeps a possible loss manageable and creates learning. Investing all savings, expanding without demand knowledge, or blindly borrowing and copying shows speculation rather than informed entrepreneurial risk-taking.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
