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A student says that an online business is easy to start and therefore has no risk. What is the correct response?

Answer and explanation

Correct answer: Online businesses may also face competition security payment and delivery risks

Direct answer: C. Easy starting does not mean zero risk. An online business may be convenient to launch, but it still depends on customers, technology and operations. Step by step, the entrepreneur must attract customers despite competition, protect personal and payment data, use secure systems, handle refunds and payment failures, manage stock, arrange delivery and follow applicable laws. Internet visibility can also create reputation and fraud risks. Option A is wrong because online businesses do have customers. Option B is wrong because online businesses are not outside legal rules; relevant consumer, tax, privacy or other requirements may apply. Option C is correct because it names realistic competition, security, payment and delivery risks. Option D is wrong because no business is always profitable; revenue may be low and costs may exceed it. Memory cue: online changes the channel, not the need for planning and risk management.

Related tags

Online-Business-MythDigital-RiskCompetitionMyths About EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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