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If an entrepreneur compares cost and benefit before buying a new machine, which skill is shown?

Answer and explanation

Correct answer: Wise decision making

The direct answer is B: wise decision making. Buying a machine is a business investment, so the entrepreneur should compare expected benefits with total costs before deciding. Costs may include the purchase price, installation, training, maintenance, energy, repairs, and finance. Benefits may include higher production, better quality, faster work, lower waste, or reduced labour time. The entrepreneur can then judge whether the likely gain justifies the expense and risk. Option B is correct because this is a planned, evidence-based decision. Option A is wrong because comparing cost and benefit is the opposite of buying thoughtlessly. Option C is wrong because careful evaluation shows engagement with work, not avoidance. Option D is wrong because considering costs and benefits helps reduce improper risk; it does not itself mean taking an unsuitable risk. The final choice should also consider cash flow and business needs. Memory cue: before buying, ask “What will it cost, and what will it give?”

Related tags

Home-ScienceEntrepreneurshipDecision-Making

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