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Why should an entrepreneur estimate costs and expected profit?

Answer and explanation

Correct answer: To understand the feasibility of the business

Cost and profit estimates help an entrepreneur compare expected revenue with expenses such as materials, wages, rent, transport, and marketing. This supports decisions about feasibility, pricing, budgeting, and required finance. These estimates do not directly test product quality, which requires a separate process. Hence, option A is correct.

Related tags

Business FeasibilityCost EstimationEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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