Question

Justify the following statement.

A successful businessman takes a calculated risk.

Answer 1

A successful businessman should be calculated in taking risks. He should be prepared to face challenges and look for opportunities in every adverse situation in 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 a fall in prices, changes in fashion, earthquakes, etc. All these risks cannot be insured with insurance companies. A risk that cannot be insured against and measured is called uncertainty. A businessman buys factors of production at certain prices to combine their contributions into the products and then sells those products at uncertain prices in the future. Thus, a Successful businessman takes a calculated risk.