Why is collecting information important while making decisions in an enterprise?
Answer and explanation
Correct answer: Because correct information reduces risk and improves decisions
Relevant and reliable information helps an entrepreneur compare alternatives, understand customers and costs, estimate risks, and choose a suitable course of action. It cannot guarantee profit because markets remain uncertain, and gathering information does not replace implementation. Decisions based only on guesses are more likely to be weak. Therefore, option A is the most accurate statement.
Frequently asked questions
What is the correct answer to this question?
Because correct information reduces risk and improves decisions
Why is this the correct answer?
Relevant and reliable information helps an entrepreneur compare alternatives, understand customers and costs, estimate risks, and choose a suitable course of action. It cannot guarantee profit because markets remain uncertain, and gathering information does not replace implementation. Decisions based only on guesses are more likely to be weak. Therefore, option A is the most accurate statement.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
