How should an entrepreneur use competition instead of fearing it?
Answer and explanation
Correct answer: By improving quality and service and creating differentiation
Competition gives an entrepreneur information about customer expectations, rival offerings, prices, and service standards. By studying it, the entrepreneur can improve quality, provide better service, introduce useful features, or create a clear difference in the market. Closing the business or hiding from customers is not a strategy, and blindly cutting prices can reduce profit. Hence, option A is correct.
Frequently asked questions
What is the correct answer to this question?
By improving quality and service and creating differentiation
Why is this the correct answer?
Competition gives an entrepreneur information about customer expectations, rival offerings, prices, and service standards. By studying it, the entrepreneur can improve quality, provide better service, introduce useful features, or create a clear difference in the market. Closing the business or hiding from customers is not a strategy, and blindly cutting prices can reduce profit. Hence, option A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
