In which situation is an entrepreneur’s risk-taking considered wise?
Answer and explanation
Correct answer: When risk is assessed and alternatives are ready
Entrepreneurial risk cannot be removed completely, but it can be managed through analysis. Wise risk-taking considers evidence, estimates possible gains and losses, checks available resources, and prepares a backup or alternative plan. Guesswork, ignoring possible loss, and rejecting all advice make a decision careless rather than courageous. Therefore, option A describes calculated risk-taking.
Frequently asked questions
What is the correct answer to this question?
When risk is assessed and alternatives are ready
Why is this the correct answer?
Entrepreneurial risk cannot be removed completely, but it can be managed through analysis. Wise risk-taking considers evidence, estimates possible gains and losses, checks available resources, and prepares a backup or alternative plan. Guesswork, ignoring possible loss, and rejecting all advice make a decision careless rather than courageous. Therefore, option A describes calculated risk-taking.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Financial Management. Topic: Investment decision.
