Why is market research important for an entrepreneur?
Answer and explanation
Correct answer: To understand customer needs and preferences
Market research gathers and analyses information about customers, competitors, demand, prices, and market conditions. It helps an entrepreneur decide what to offer, whom to serve, how to position the product, and which risks deserve attention. It is not primarily shop decoration, holiday scheduling, or a method of reducing tax. Therefore, understanding customer needs makes option A correct.
Frequently asked questions
What is the correct answer to this question?
To understand customer needs and preferences
Why is this the correct answer?
Market research gathers and analyses information about customers, competitors, demand, prices, and market conditions. It helps an entrepreneur decide what to offer, whom to serve, how to position the product, and which risks deserve attention. It is not primarily shop decoration, holiday scheduling, or a method of reducing tax. Therefore, understanding customer needs makes option A 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.
