What term describes the chance of gaining or losing something as a result of an action taken?

• A. Investment
• B. Reward
• C. Risk
• D. Outcome

Answer: (C)

The term that describes the chance of gaining or losing something as a result of an action taken is "risk." In the context of business and finance, risk refers to the uncertainty surrounding the outcomes of decisions, where there is a possibility of either profit or loss. Understanding risk is crucial for making informed decisions, particularly when planning investments or engaging in entrepreneurial activities.

When individuals or businesses evaluate their options, they assess the risks involved in order to anticipate potential outcomes. This involves analyzing both the positive aspects (rewards) and the negative aspects (losses) of a decision. Therefore, risk plays a fundamental role in the decision-making process, as it quantifies the level of uncertainty related to the potential consequences of actions taken.