What does testing a product on a small scale reduce for an entrepreneur?
Answer and explanation
Correct answer: Risk of major failure and unnecessary expense
A small pilot or prototype exposes the product to limited real users before the entrepreneur commits substantial money and resources. Feedback can reveal defects, unclear features, or weak demand, allowing changes at lower cost. Testing does not reduce learning or the need for improvement; those are important benefits of testing. It mainly limits the scale of possible loss.
Frequently asked questions
What is the correct answer to this question?
Risk of major failure and unnecessary expense
Why is this the correct answer?
A small pilot or prototype exposes the product to limited real users before the entrepreneur commits substantial money and resources. Feedback can reveal defects, unclear features, or weak demand, allowing changes at lower cost. Testing does not reduce learning or the need for improvement; those are important benefits of testing. It mainly limits the scale of possible loss.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
