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CMA Final · Entrepreneurship and Startup · Entrepreneurial Skill Sets

Which statement about the entrepreneurial trait of 'tolerance for ambiguity' is correct?

Tolerance for ambiguity is the ability to decide and function effectively when information is incomplete and outcomes are uncertain. Entrepreneurs need it because new ventures rarely have full data. Delaying decisions until everything is known, or preferring rigid roles, reflects low tolerance for ambiguity.

  1. AIt is the ability to make decisions and function effectively when information is incomplete and outcomes are uncertainCorrect
  2. BIt is the habit of postponing decisions until all information is available
  3. CIt is the preference for rigid, fully defined job roles and procedures
  4. DIt is the tendency to avoid new situations lacking precedents

Explanation

Startups operate with incomplete data on markets, customers and technology, so entrepreneurs must act sensibly despite uncertainty. Waiting for complete information leads to paralysis and missed opportunities. Preferring rigid roles and avoiding novel situations reflect low tolerance for ambiguity.

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