If an entrepreneur must choose between two opportunities, what is the most scientific basis?
Answer and explanation
Correct answer: Comparative study of demand, cost, risk, and profit
An opportunity should be assessed through relevant evidence rather than personal preference. The entrepreneur should compare expected demand, production and operating costs, possible risks, and likely returns. This comparison helps judge feasibility and choose the stronger option. Personal wishes, a neighbour’s opinion, or an attractive name may be considered later, but they cannot replace systematic analysis.
Frequently asked questions
What is the correct answer to this question?
Comparative study of demand, cost, risk, and profit
Why is this the correct answer?
An opportunity should be assessed through relevant evidence rather than personal preference. The entrepreneur should compare expected demand, production and operating costs, possible risks, and likely returns. This comparison helps judge feasibility and choose the stronger option. Personal wishes, a neighbour’s opinion, or an attractive name may be considered later, but they cannot replace systematic analysis.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
