Why should an entrepreneur test their assumptions?
Answer and explanation
Correct answer: Because unchecked assumptions may lead to wrong decisions and losses
An assumption is an unverified belief about customers, costs, demand, or operations. Testing it through surveys, prototypes, trials, or sales evidence provides real feedback and reduces uncertainty. If it is wrong, the entrepreneur can change the plan early. Therefore testing reduces risk rather than wasting time.
Frequently asked questions
What is the correct answer to this question?
Because unchecked assumptions may lead to wrong decisions and losses
Why is this the correct answer?
An assumption is an unverified belief about customers, costs, demand, or operations. Testing it through surveys, prototypes, trials, or sales evidence provides real feedback and reduces uncertainty. If it is wrong, the entrepreneur can change the plan early. Therefore testing reduces risk rather than wasting time.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
