An entrepreneur sees that farmers in a village cannot directly reach customers and creates a service connecting farmers and customers. What is this an example of?
Answer and explanation
Correct answer: Converting a problem into an opportunity
The entrepreneur first observes a real distribution problem and then designs a service that creates value for both sides. The unmet need becomes the basis of a feasible business opportunity. This is different from merely seeking employment, avoiding all risk, or stopping production because a new solution and venture are being developed.
Frequently asked questions
What is the correct answer to this question?
Converting a problem into an opportunity
Why is this the correct answer?
The entrepreneur first observes a real distribution problem and then designs a service that creates value for both sides. The unmet need becomes the basis of a feasible business opportunity. This is different from merely seeking employment, avoiding all risk, or stopping production because a new solution and venture are being developed.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
