Concept, characteristics and objectives of business

Correct answer: A. Cost, customer, and market

Pricing should consider the cost of producing or acquiring the offering, what target customers are willing to pay, competitor prices, demand, and the value delivered. Balancing these factors helps a business remain viable while offering an acceptable price. Shop colour or a holiday alone provides no sound pricing basis, and giving everything free does not normally support recovery of costs or sustainability.

Correct answer: A. Giving real value to customers increases the chance of sustainable profit

Value creation means solving a customer problem or providing a benefit the customer considers worthwhile. When customers receive genuine value, they are more likely to buy, return, recommend the offering, and trust the enterprise. These outcomes support sustainable profit. Profit gained through deception or without value is unlikely to remain stable.

Correct answer: A. Solving problems, creating value, and earning profit responsibly

Entrepreneurship involves identifying needs, creating useful value, organising resources, accepting measured risk, and seeking a return. Responsible profit supports continuity, but it should be earned through lawful and ethical value creation. Quick money alone, unfairly removing competitors, or ignoring customers does not represent a balanced entrepreneurial objective.