What term is used to describe a business undertaking that involves risks but could lead to profit?

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Study for the SAT Vocabulary 2025 Test. Master vocabulary with flashcards and questions, each with detailed explanations. Get ready for your exam!

The term "venture" is commonly used to describe a business undertaking that involves risk but has the potential for profit. In this context, a venture typically refers to a specific type of project or investment, often highlighting the uncertain nature of the endeavor. This word captures the essence of pursuing new opportunities while acknowledging the associated risks that may result in both losses and gains.

While "investment" refers to the allocation of resources with an expectation of future returns, it does not inherently emphasize the aspect of risk and active engagement in a new project. "Enterprise" can signify a broader concept of a business operation or initiative, but it may not specifically denote the risk-taking nature associated with starting a new venture. "Undertaking" is a more general term that refers to any task or project but lacks the connotation of business risk and opportunity for profit that "venture" conveys.

Thus, "venture" specifically encapsulates the combination of risk and potential reward inherent in a business context, making it the most accurate choice for describing such an undertaking.