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In which situation has the entrepreneur taken a calculated risk?

Answer and explanation

Correct answer: Started a new product after assessing possible profit, loss, and alternatives

A calculated risk is taken after gathering information, estimating possible outcomes, considering alternatives, and deciding whether the expected benefit justifies the possible loss. It does not mean that failure is impossible. Investing blindly, ignoring demand, or relying on rumours reflects careless risk-taking rather than informed entrepreneurial decision-making.

Related tags

Calculated-RiskRisk-ManagementInvestment DecisionFinancial ManagementBusiness StudiesClass 12 Mcq

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