What is the most important check before expanding a business?
Answer and explanation
Correct answer: Checking demand, finance, operational capacity, and risk
Expansion increases investment, operating responsibilities, staffing needs, and business risk. Therefore, an entrepreneur should assess market demand, available finance, production or service capacity, and likely risks before deciding. A name change, hiding complaints, or opening branches without planning cannot establish whether expansion is feasible.
Frequently asked questions
What is the correct answer to this question?
Checking demand, finance, operational capacity, and risk
Why is this the correct answer?
Expansion increases investment, operating responsibilities, staffing needs, and business risk. Therefore, an entrepreneur should assess market demand, available finance, production or service capacity, and likely risks before deciding. A name change, hiding complaints, or opening branches without planning cannot establish whether expansion is feasible.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce. Topic: Business Risk.
