account to the possibility or starting his own business. Although his bank job pays
well and offers pleasant working conditions, Eli is frustrated because he has little
freedom or flexibility to deal with customers since every decision he makes must be
approved by his supervisor. He is also a bit bored and looking for a new challenge.
He thinks he might get a lot of satisfaction from owning his own business. Eli has not
made a definite decision yet, but has talked to a lot of people searching for a good
idea for a new business. If he can come up with an idea he likes, he might just quit
his current job and use his inheritance to go into business for himself!
As he starts his research, Eli notices that some opportunities appear to be riskier
than others. When considering various opportunities, Eli should keep in mind that
A) high-risk business opportunities often have the potential for high returns as
well.
B) he will be better off picking a low-risk business opportunity, since the safest
ones are usually the most profitable as well.
C) even though some opportunities appear riskier than others, the level of risk
actually varies little from one opportunity to another.
D) government regulations are in place to protect investors and entrepreneurs
from failure, so there is no need to worry about risk.