Entrepreneurship Development

Correct answer: A. The value of the next best alternative given up when one option is chosen

Opportunity cost is the value of the next best alternative sacrificed when a choice is made. For example, if business funds are used for equipment instead of advertising, the benefit that advertising could have produced is the opportunity cost. It is not total expenditure, a discount, or guaranteed profit.

Correct answer: A. Because unchecked assumptions may lead to wrong decisions and losses

An assumption is an unverified belief about customers, costs, demand, or operations. Testing it through surveys, prototypes, trials, or sales evidence provides real feedback and reduces uncertainty. If it is wrong, the entrepreneur can change the plan early. Therefore testing reduces risk rather than wasting time.

Correct answer: A. When customer needs, technology, or market conditions change

Adaptability means adjusting plans, products, processes, or strategies when circumstances change. Changes in customer preferences, technology, regulations, or competition may make an old business model less effective. A stable market or absence of decisions creates less need for this skill, so option A is the best answer.

Correct answer: A. Because satisfied customers may repurchase and recommend

A satisfied retained customer may buy repeatedly, require less persuasion, and recommend the business to others. This can support stable revenue and reduce the effort and cost involved in acquiring completely new customers. Retention is not automatic, but the other options wrongly deny the value of repeat buying and customer relationships.

Correct answer: A. Identifying causes, creating practical solutions, and checking results

Effective problem solving involves defining the problem, finding its likely cause, developing a practical response, implementing it, and reviewing the result. This process allows correction when the solution does not work. Ignoring problems, repeating unsuitable methods, or blaming others without evidence cannot reliably improve business performance.

Correct answer: A. Starting a low-energy study-lamp service in an area with power cuts

Frequent power cuts create a real need for dependable lighting. A low-energy study-lamp service responds to that need and therefore converts a problem into a possible business opportunity. The other choices avoid the problem, ignore customers, or create a product without demonstrated demand, so they do not show opportunity recognition.