Which option shows correct cost control by an entrepreneur?
Answer and explanation
Correct answer: Reducing unnecessary expenses while maintaining quality
Cost control means using resources efficiently and removing avoidable expenditure without damaging the value promised to customers. The entrepreneur may reduce waste, negotiate supplies, improve processes, or control unnecessary overheads while preserving essential quality and service. Using poor materials, arbitrary dismissals, or stopping customer service may reduce visible expense but can create returns, dissatisfaction, and larger future costs.
Frequently asked questions
What is the correct answer to this question?
Reducing unnecessary expenses while maintaining quality
Why is this the correct answer?
Cost control means using resources efficiently and removing avoidable expenditure without damaging the value promised to customers. The entrepreneur may reduce waste, negotiate supplies, improve processes, or control unnecessary overheads while preserving essential quality and service. Using poor materials, arbitrary dismissals, or stopping customer service may reduce visible expense but can create returns, dissatisfaction, and larger future costs.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
