If two business opportunities show similar profit, which factor should receive more importance while choosing the better one?
Answer and explanation
Correct answer: Risk, resources, and sustainability
When expected profit is similar, the entrepreneur should compare the risk involved, the availability of required money and skills, and the ability of each model to continue over time. A catchy name, imitation, or quick fame does not establish feasibility or durability. Considering risk, resources, and sustainability leads to a more informed and responsible choice. Hence A is correct.
Frequently asked questions
What is the correct answer to this question?
Risk, resources, and sustainability
Why is this the correct answer?
When expected profit is similar, the entrepreneur should compare the risk involved, the availability of required money and skills, and the ability of each model to continue over time. A catchy name, imitation, or quick fame does not establish feasibility or durability. Considering risk, resources, and sustainability leads to a more informed and responsible choice. Hence A is correct.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Financial Management. Topic: Investment decision.
