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Why should an entrepreneur first conduct a small market test of a product?

Answer and explanation

Correct answer: To obtain feedback before risking a major loss

A small market test lets an entrepreneur observe responses to the product, price, packaging, and service before making a large commitment. Feedback can reveal needed changes and limit the cost of failure. The aim is controlled learning, not confusing customers, hiding costs, or advertising without purpose. Therefore, option A correctly explains the value of a small market test.

Related tags

Market-TestCustomer-FeedbackEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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