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Which action is most necessary before expanding an enterprise?

Answer and explanation

Correct answer: Check current operations, demand, and financial capacity

Expansion increases the need for finance, people, stock, systems, and managerial attention. Before proceeding, the entrepreneur should examine current performance, evidence of demand, operational capacity, and available funds or financing. This helps determine whether the business can support growth without damaging quality or cash flow. Opening without preparation, removing staff, or ending feedback weakens the expansion decision.

Related tags

Business-ExpansionCapacity-PlanningEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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