An entrepreneur observes that demand for a product changes with the seasons and changes the inventory plan accordingly. Which ability does this demonstrate?
Answer and explanation
Correct answer: Adaptation to change
The correct answer is A because the entrepreneur notices a change in market demand and adjusts a business decision in response. Seasonal demand may rise or fall at different times, so suitable inventory planning can reduce shortages, excess stock, and unnecessary storage costs. This shows flexibility and responsiveness to changing conditions. Blind copying does not involve independent observation, while unethical selling and distance from customers contradict the behaviour described in the question.
Frequently asked questions
What is the correct answer to this question?
Adaptation to change
Why is this the correct answer?
The correct answer is A because the entrepreneur notices a change in market demand and adjusts a business decision in response. Seasonal demand may rise or fall at different times, so suitable inventory planning can reduce shortages, excess stock, and unnecessary storage costs. This shows flexibility and responsiveness to changing conditions. Blind copying does not involve independent observation, while unethical selling and distance from customers contradict the behaviour described in the question.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
