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If an entrepreneur estimates possible loss before applying a new idea, which quality is shown?

Answer and explanation

Correct answer: Risk assessment

The direct answer is A: the entrepreneur shows risk assessment. Risk assessment means identifying what may go wrong, estimating how serious the possible loss could be, and considering ways to reduce or manage it before acting. Step by step: a new idea is proposed; possible failure, expense or loss is identified; the likely effect is estimated; information is collected; precautions or a backup plan are considered; then a more informed decision is made. Option A is correct because estimating possible loss is the central meaning of risk assessment. Option B is wrong because the entrepreneur is not abandoning work; the person is preparing carefully. Option C is wrong because assessing risk can involve consultation and cooperation rather than refusal to cooperate. Option D is wrong because the entrepreneur is paying attention to possible problems, not neglecting them. Risk assessment does not mean avoiding every risk. Entrepreneurship often involves calculated risk, where possible benefits and losses are compared before action. Memory cue: before taking a risk, identify, estimate and plan.

Related tags

Home-ScienceEntrepreneurshipRisk-Assessment

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