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Question
Entrepreneurs undertake
Options
Calculated risk
High risk
Low risk
Moderate and calculated risk
Solution
Calculated risk
Explanation -
The possibility that realised profits are smaller than expected profits is referred to as risk. When an entrepreneur starts a business, he has no guarantee that it will succeed. There is no assurance of returns of profits. Moreover, He also takes the risk of pursuing entrepreneurship as a career rather than practicing a profession with a guaranteed payoff. An entrepreneur, on the other hand, constantly takes calculated risks. They try to minimise the risk based on their skill, training, and confidence. For example, an entrepreneur may enter into prior contracts with clients to assure that the product is sold. As a result, entrepreneurs are believed to take moderate and calculated risks.
