What is the correct meaning of competition in business?
Answer and explanation
Correct answer: Several businesses trying to meet the needs of the same customer group
Business competition exists when two or more enterprises offer similar or substitute products and try to attract the same customers. It encourages firms to consider price, quality, service, and innovation. Therefore option A gives the correct meaning. The other choices describe absence of customers, higher costs, or closure, not competition itself.
Frequently asked questions
What is the correct answer to this question?
Several businesses trying to meet the needs of the same customer group
Why is this the correct answer?
Business competition exists when two or more enterprises offer similar or substitute products and try to attract the same customers. It encourages firms to consider price, quality, service, and innovation. Therefore option A gives the correct meaning. The other choices describe absence of customers, higher costs, or closure, not competition itself.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Concept, characteristics and objectives of business.
