Which option shows the best use of resources by an entrepreneur?
Answer and explanation
Correct answer: Spending limited capital on priority needs
Resource management requires the entrepreneur to rank needs and direct scarce money, time, and materials toward activities essential for starting and serving customers. Priority spending supports operations and reduces waste. Spending all capital on appearance, buying unnecessary items, or failing to record expenses weakens control and may leave too little working capital.
Frequently asked questions
What is the correct answer to this question?
Spending limited capital on priority needs
Why is this the correct answer?
Resource management requires the entrepreneur to rank needs and direct scarce money, time, and materials toward activities essential for starting and serving customers. Priority spending supports operations and reduces waste. Spending all capital on appearance, buying unnecessary items, or failing to record expenses weakens control and may leave too little working capital.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
