In which situation will an entrepreneur most need external support?
Answer and explanation
Correct answer: When legal, financial, or technical knowledge is not sufficient
An entrepreneur cannot be an expert in every area. When a decision involves legal compliance, financial planning, taxation, technology, or another specialised field beyond the entrepreneur’s knowledge, qualified external advice can reduce errors and risk. Support may still be useful in other circumstances, but option A presents the clearest need. The other options describe conditions with less immediate need.
Frequently asked questions
What is the correct answer to this question?
When legal, financial, or technical knowledge is not sufficient
Why is this the correct answer?
An entrepreneur cannot be an expert in every area. When a decision involves legal compliance, financial planning, taxation, technology, or another specialised field beyond the entrepreneur’s knowledge, qualified external advice can reduce errors and risk. Support may still be useful in other circumstances, but option A presents the clearest need. The other options describe conditions with less immediate need.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Government assistance and institutional support.
