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.
Frequently asked questions
What is the correct answer to this question?
Started a new product after assessing possible profit, loss, and alternatives
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Financial Management. Topic: Investment decision.
