If a student's small enterprise keeps making the same product even when market demand falls, what is the biggest entrepreneurial mistake?
Answer and explanation
Correct answer: Ignoring customer signals
Falling demand is an important market signal. It may indicate that customer needs, preferences, price expectations, or competing alternatives have changed. Continuing the same production without investigating can increase unsold stock and losses. A responsible entrepreneur studies feedback and demand before improving, repositioning, or changing the product.
Frequently asked questions
What is the correct answer to this question?
Ignoring customer signals
Why is this the correct answer?
Falling demand is an important market signal. It may indicate that customer needs, preferences, price expectations, or competing alternatives have changed. Continuing the same production without investigating can increase unsold stock and losses. A responsible entrepreneur studies feedback and demand before improving, repositioning, or changing the product.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
