Why is testing an idea on a small scale useful for an entrepreneur?
Answer and explanation
Correct answer: To understand the usefulness of an idea with lower risk
A small pilot allows an entrepreneur to observe customer response, operating difficulties, cost and demand before committing large resources. The results can guide improvement or prevent a costly launch. Option A is correct because it combines learning with lower exposure. A pilot is not meant to spend all capital or avoid customers.
Frequently asked questions
What is the correct answer to this question?
To understand the usefulness of an idea with lower risk
Why is this the correct answer?
A small pilot allows an entrepreneur to observe customer response, operating difficulties, cost and demand before committing large resources. The results can guide improvement or prevent a costly launch. Option A is correct because it combines learning with lower exposure. A pilot is not meant to spend all capital or avoid customers.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
