In order to make an intelligent investment decision, entrepreneurs should:
A) limit their options to those business investments that are backed by the U.S. government.
B) invest in businesses that have generated a stable rate of profit for at least the past ten years.
C) invest only in business opportunities where it is possible to take an active role in management.
D) compare the risks of potential investments to their expected profits and find the right balance between profit and risk.

Question

Quizplus · Accepted Answer

It is important to carefully consider the risks associated with potential investments and compare them to expected profits. Entrepreneurs should aim to find a balance between profit potential and risk, rather than limiting themselves to government-backed investments or only investing in businesses with a stable rate of profit. While taking an active role in management can be beneficial, it should not be the sole determining factor in making an investment decision.

In Order to Make an Intelligent Investment Decision, Entrepreneurs Should