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An entrepreneur collected customer feedback and tested a new product on a small scale before launch. What type of risk behaviour does this show?

Answer and explanation

Correct answer: Calculated risk

The entrepreneur did not act blindly or avoid uncertainty altogether. Feedback and small-scale testing provide information about customer needs, costs and possible problems, allowing a better decision before full investment. This is calculated risk-taking, so D is correct. Reckless risk ignores evidence, while complete avoidance would mean not testing or launching at all.

Related tags

Calculated RiskMarket TestingFeedbackDecision MakingIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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