Why does an entrepreneur first sell a small sample of a product in the market?
Answer and explanation
Correct answer: To test customer response and demand
A small market test limits the initial commitment of money and materials while providing evidence about customer interest, usability, price acceptance, and possible improvements. The entrepreneur can use feedback to refine the product before expanding production. It cannot guarantee success or remove competition, and it must still follow legal requirements. Therefore, option A is correct.
Frequently asked questions
What is the correct answer to this question?
To test customer response and demand
Why is this the correct answer?
A small market test limits the initial commitment of money and materials while providing evidence about customer interest, usability, price acceptance, and possible improvements. The entrepreneur can use feedback to refine the product before expanding production. It cannot guarantee success or remove competition, and it must still follow legal requirements. Therefore, option A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
