If an entrepreneur works only on assumptions and ignores data, what is the risk?
Answer and explanation
Correct answer: Higher chance of wrong decisions
Assumptions about customer needs, demand, price, or cost may be incomplete or wrong. Research, trials, sales records, and feedback provide evidence for testing those assumptions and improving decisions. Data cannot guarantee success, but ignoring it increases uncertainty and the chance of investing in an unsuitable product or strategy. The other options describe impossible automatic outcomes.
Frequently asked questions
What is the correct answer to this question?
Higher chance of wrong decisions
Why is this the correct answer?
Assumptions about customer needs, demand, price, or cost may be incomplete or wrong. Research, trials, sales records, and feedback provide evidence for testing those assumptions and improving decisions. Data cannot guarantee success, but ignoring it increases uncertainty and the chance of investing in an unsuitable product or strategy. The other options describe impossible automatic outcomes.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
