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If an entrepreneur produces a large quantity without checking demand, what is the main risk?

Answer and explanation

Correct answer: Risk of unsold stock and blocked money

Production without demand evidence can leave the enterprise with stock that customers do not want or cannot buy quickly. Money becomes tied up in inventory, storage and handling costs may rise, and the business may face spoilage, obsolescence, or discounting. Demand research cannot guarantee sales, but it helps align production with likely purchases. The other options are unsupported automatic outcomes.

Related tags

DemandInventory-RiskBusiness RiskBusinessTrade And CommerceBusiness Trade And CommerceBusiness StudiesClass 11 Mcq

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