If an enterprise has costs consistently higher than income, what should be checked first?
Answer and explanation
Correct answer: Business model and cost structure
Persistent costs above income indicate a possible problem with the business model, pricing, sales, revenue sources, or expenses. Examining the cost structure and business model helps locate the imbalance and identify corrective action. Decoration, age, and office colour do not explain the central financial problem or improve its diagnosis.
Frequently asked questions
What is the correct answer to this question?
Business model and cost structure
Why is this the correct answer?
Persistent costs above income indicate a possible problem with the business model, pricing, sales, revenue sources, or expenses. Examining the cost structure and business model helps locate the imbalance and identify corrective action. Decoration, age, and office colour do not explain the central financial problem or improve its diagnosis.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
