Why is risk-taking connected with entrepreneurship?
Answer and explanation
Correct answer: Because outcomes in new work are not fully certain
A new venture involves uncertainty about demand, costs, competition, and results. An entrepreneur therefore accepts a possibility of gain or loss after studying information and preparing a plan. This is called calculated or informed risk-taking, not careless behaviour. Hence option A is correct; loss is possible but never certain, and planning remains essential.
Frequently asked questions
What is the correct answer to this question?
Because outcomes in new work are not fully certain
Why is this the correct answer?
A new venture involves uncertainty about demand, costs, competition, and results. An entrepreneur therefore accepts a possibility of gain or loss after studying information and preparing a plan. This is called calculated or informed risk-taking, not careless behaviour. Hence option A is correct; loss is possible but never certain, and planning remains essential.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
