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An entrepreneur has three options: high return with very high risk, moderate return with manageable risk, and low return with almost no growth. Which is the balanced decision?

Answer and explanation

Correct answer: The second because return and risk are balanced

Entrepreneurial choice should compare expected benefit with the level of risk the entrepreneur can reasonably bear. The second option offers useful returns without the extreme exposure of the first and more growth than the third. The exact choice would still require evidence, but B is the balanced option described.

Related tags

Risk ReturnDecision MakingIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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