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Why should an entrepreneur prepare a list of business risks?

Answer and explanation

Correct answer: To prepare in advance for possible problems

A risk is a possible event that may negatively affect a business, such as supply delay, unexpected expense, or reduced sales. Listing risks helps the entrepreneur assess their likely effect and prepare preventive measures, backup suppliers, savings, or alternative plans. It cannot remove every risk, but it improves readiness and decision-making. Therefore, option D correctly describes the purpose of risk identification.

Related tags

Risk-IdentificationRisk-ManagementPlanningIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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