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Why does an entrepreneur first sell a small sample of a product in the market?

Answer and explanation

Correct answer: To test customer response and demand

A small market test limits the initial commitment of money and materials while providing evidence about customer interest, usability, price acceptance, and possible improvements. The entrepreneur can use feedback to refine the product before expanding production. It cannot guarantee success or remove competition, and it must still follow legal requirements. Therefore, option A is correct.

Related tags

Market TestingCustomer FeedbackProduct ValidationEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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