What should be identified first before starting a business?
Answer and explanation
Correct answer: Customer need
A business creates value by meeting a customer need or solving a customer problem. Identifying the target customer and understanding the need helps the entrepreneur select an appropriate product, service, features, and value proposition. Decoration, an impressive name, or expensive furniture may come later and cannot replace demand analysis.
Frequently asked questions
What is the correct answer to this question?
Customer need
Why is this the correct answer?
A business creates value by meeting a customer need or solving a customer problem. Identifying the target customer and understanding the need helps the entrepreneur select an appropriate product, service, features, and value proposition. Decoration, an impressive name, or expensive furniture may come later and cannot replace demand 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.
