On what basis should an entrepreneur decide whether a business idea is feasible?
Answer and explanation
Correct answer: Market demand, costs, resources, and profit potential
Feasibility means assessing whether an idea can work successfully in practice. The entrepreneur should examine customer demand, expected costs, availability of finance and other resources, operational requirements, and the possibility of earning a reasonable return. Excitement, praise, or an attractive name may encourage the entrepreneur, but none of them proves that the idea is workable or profitable. Therefore, option A gives the relevant basis for feasibility analysis.
Frequently asked questions
What is the correct answer to this question?
Market demand, costs, resources, and profit potential
Why is this the correct answer?
Feasibility means assessing whether an idea can work successfully in practice. The entrepreneur should examine customer demand, expected costs, availability of finance and other resources, operational requirements, and the possibility of earning a reasonable return. Excitement, praise, or an attractive name may encourage the entrepreneur, but none of them proves that the idea is workable or profitable. Therefore, option A gives the relevant basis for feasibility 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.
