Why is risk-taking ability important for an entrepreneur?
Answer and explanation
Correct answer: Because business results are not always certain
Business decisions involve uncertainty: demand, costs, competition, and returns may not be known with complete certainty in advance. An entrepreneur therefore needs the ability to assess information, compare possible outcomes, and take a calculated risk rather than act blindly. Risk does not always cause loss, and it does not remove the need for planning or imply that customers will never come.
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What is the correct answer to this question?
Because business results are not always certain
Why is this the correct answer?
Business decisions involve uncertainty: demand, costs, competition, and returns may not be known with complete certainty in advance. An entrepreneur therefore needs the ability to assess information, compare possible outcomes, and take a calculated risk rather than act blindly. Risk does not always cause loss, and it does not remove the need for planning or imply that customers will never come.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
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