Why should an entrepreneur collect information before making decisions?
Answer and explanation
Correct answer: To reduce the risk of wrong decisions
Reliable information about customers, costs, competitors, resources, rules, and possible outcomes helps an entrepreneur compare alternatives and identify problems before committing resources. It cannot remove uncertainty completely, but it can reduce avoidable mistakes and improve the quality of judgement. Information gathering should support timely action, not become an excuse for endless delay or dependence on others.
Frequently asked questions
What is the correct answer to this question?
To reduce the risk of wrong decisions
Why is this the correct answer?
Reliable information about customers, costs, competitors, resources, rules, and possible outcomes helps an entrepreneur compare alternatives and identify problems before committing resources. It cannot remove uncertainty completely, but it can reduce avoidable mistakes and improve the quality of judgement. Information gathering should support timely action, not become an excuse for endless delay or dependence on others.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
