Question

State the different ways in which an entrepreneur can deal with risk.

Answer 1

An enterpreneur can deal with risks in following ways :

(a) Efficient management — An efficient management links business organisation with its business environment requirements. Thus bunging required changes for minimising the risks.

(b) Good and safe working conditions— Good healthy and safe working conditions minimise the risks of accidents, health hazards and so on.

(c) Insurance provision—By getting insurance coverage for different kinds of risk - fire, marine, insurance and so on, the risks can be minimised.