Which step is most suitable at the beginning of a small enterprise?
Answer and explanation
Correct answer: Testing the idea on a small scale
Small-scale testing allows an entrepreneur to check customer interest, product usefulness, cost, and practical difficulties before committing substantial resources. It reduces avoidable risk and creates an opportunity to improve the idea using evidence. Large immediate spending, avoiding customers, and starting without a plan increase uncertainty. Thus testing the idea on a small scale is the most suitable initial step.
Frequently asked questions
What is the correct answer to this question?
Testing the idea on a small scale
Why is this the correct answer?
Small-scale testing allows an entrepreneur to check customer interest, product usefulness, cost, and practical difficulties before committing substantial resources. It reduces avoidable risk and creates an opportunity to improve the idea using evidence. Large immediate spending, avoiding customers, and starting without a plan increase uncertainty. Thus testing the idea on a small scale is the most suitable initial step.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
