Why does a businessman willingly undertake business risk?

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Solution

No risk, no gain is an age-old principle, which applies to all types of business. Greater the risk involved in a business, higher is the chance of profit. An entrepreneur undertakes risks under the expectation of higher profit. Profit is thus the reward for risk taking.

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Similar questions

What reward does a businessman get for bearing the risk?

Entrepreneurs undertake

(a) Calculated risk

(b) High risk

(d) Moderate and calculated risk

The degree of risk does not depend mainly on the nature and size of the business.

Explain the following features of business risk.

(a) Business risks arise due to uncertainties

(b) Risk is an essential part of every business

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