Question

Justify the following statement.

A successful businessman takes a calculated risk.

Answer 1

A successful businessman should be calculative in taking a risk. He should be prepared to face challenges and look for opportunities in every adverse situation of the business. He should be self-confident to achieve his organizational goals. He should always keep himself confident and motivated to face various obstacles and come out victorious every time in every challenge he faces.
A businessman has to undertake many risks including fall in prices, changes in fashion, earthquake, etc. All these risks cannot be insured with insurance companies. A risk that cannot be insured against and measured is called uncertainty. businessman buys factors of production at certain prices to combine their contributions into the products and then sell those products at uncertain prices in the future. Thus, a Successful businessman takes a calculated risk.