Business Studies · Decision Making
Which of the following statements best distinguishes between 'risk' and 'uncertainty' in the context of decision-making?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Risk and uncertainty are interchangeable terms that mean the same in decision-making contexts.
- 2Risk involves situations where the probability of outcomes is known, whereas uncertainty pertains to situations where the probability of outcomes is unknown.✓
- 3Risk is associated with positive outcomes, whereas uncertainty is associated with negative outcomes.
- 4Risk refers to situations where outcomes are generally favourable, while uncertainty refers to situations where outcomes are generally unfavourable.
Correct answer
Risk involves situations where the probability of outcomes is known, whereas uncertainty pertains to situations where the probability of outcomes is unknown.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Business Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Decision Making MCQs →Want more practice questions on Decision Making?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Business Studies · Decision Making