Why is risk-taking important for an entrepreneur?
Answer and explanation
Correct answer: Because planned risk can create new opportunities
Business decisions involve uncertainty, so an entrepreneur may need to commit resources before success is guaranteed. A calculated risk is based on information, planning, and assessment of possible outcomes; it can open a new market or opportunity but never guarantees profit. Careless risk, reduced responsibility, or avoiding effort is not entrepreneurship.
Frequently asked questions
What is the correct answer to this question?
Because planned risk can create new opportunities
Why is this the correct answer?
Business decisions involve uncertainty, so an entrepreneur may need to commit resources before success is guaranteed. A calculated risk is based on information, planning, and assessment of possible outcomes; it can open a new market or opportunity but never guarantees profit. Careless risk, reduced responsibility, or avoiding effort is not entrepreneurship.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
