Which example shows that an entrepreneur is trying to estimate demand correctly?
Answer and explanation
Correct answer: Selling a sample to limited customers and observing feedback and sales
A small pilot sale provides early evidence about actual interest, buying behaviour, acceptable price, and possible improvements. Feedback and sales results from a limited group do not give perfect certainty, but they are more useful than producing a large quantity without evidence. Family opinion may be biased, and changing a shop name does not measure demand.
Frequently asked questions
What is the correct answer to this question?
Selling a sample to limited customers and observing feedback and sales
Why is this the correct answer?
A small pilot sale provides early evidence about actual interest, buying behaviour, acceptable price, and possible improvements. Feedback and sales results from a limited group do not give perfect certainty, but they are more useful than producing a large quantity without evidence. Family opinion may be biased, and changing a shop name does not measure demand.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
