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An entrepreneur priced a product very low, increasing sales but causing losses. What is the most appropriate correction?

Answer and explanation

Correct answer: Balanced review of cost and price

High sales do not necessarily mean a healthy business. The selling price should cover relevant costs and leave a reasonable margin while remaining acceptable to customers. The entrepreneur should calculate unit cost, examine customer value and competition, and then revise price or reduce avoidable costs. Free distribution, refusing customers, or hiding expenses would worsen the loss.

Related tags

PricingProfitabilityEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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