An entrepreneur has limited funds but a strong idea. What should be the first focus?
Answer and explanation
Correct answer: Small-scale testing
Small-scale testing allows an entrepreneur to examine whether customers understand, use, and value the idea before committing substantial money. It limits initial loss, provides feedback, and reveals changes needed in the product or process. A large office, expensive decoration, or an unplanned loan increases fixed costs before demand is established.
Frequently asked questions
What is the correct answer to this question?
Small-scale testing
Why is this the correct answer?
Small-scale testing allows an entrepreneur to examine whether customers understand, use, and value the idea before committing substantial money. It limits initial loss, provides feedback, and reveals changes needed in the product or process. A large office, expensive decoration, or an unplanned loan increases fixed costs before demand is established.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
