What can be a positive effect of competition in business?
Answer and explanation
Correct answer: Improvement in quality and service
Competition encourages businesses to offer better quality, service, convenience or value so that customers choose them. It can stimulate innovation and improve responsiveness, although it does not guarantee success for every firm. Option A is therefore the valid positive effect; the other choices are exaggerated consequences and are not generally true.
Frequently asked questions
What is the correct answer to this question?
Improvement in quality and service
Why is this the correct answer?
Competition encourages businesses to offer better quality, service, convenience or value so that customers choose them. It can stimulate innovation and improve responsiveness, although it does not guarantee success for every firm. Option A is therefore the valid positive effect; the other choices are exaggerated consequences and are not generally true.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
