Which action is most necessary before expanding an enterprise?
Answer and explanation
Correct answer: Check current operations, demand, and financial capacity
Expansion increases the need for finance, people, stock, systems, and managerial attention. Before proceeding, the entrepreneur should examine current performance, evidence of demand, operational capacity, and available funds or financing. This helps determine whether the business can support growth without damaging quality or cash flow. Opening without preparation, removing staff, or ending feedback weakens the expansion decision.
Frequently asked questions
What is the correct answer to this question?
Check current operations, demand, and financial capacity
Why is this the correct answer?
Expansion increases the need for finance, people, stock, systems, and managerial attention. Before proceeding, the entrepreneur should examine current performance, evidence of demand, operational capacity, and available funds or financing. This helps determine whether the business can support growth without damaging quality or cash flow. Opening without preparation, removing staff, or ending feedback weakens the expansion decision.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
