Why should data be used before making business decisions?
Answer and explanation
Correct answer: So that decisions are based on evidence instead of guesses
Relevant data can show sales trends, customer preferences, costs, demand, and performance. Examining it helps an entrepreneur compare alternatives, identify risks, and choose a more reasoned course instead of relying only on intuition. Option A is correct. Data does not automatically remove uncertainty, but the other options wrongly describe its purpose as confusion or waste.
Frequently asked questions
What is the correct answer to this question?
So that decisions are based on evidence instead of guesses
Why is this the correct answer?
Relevant data can show sales trends, customer preferences, costs, demand, and performance. Examining it helps an entrepreneur compare alternatives, identify risks, and choose a more reasoned course instead of relying only on intuition. Option A is correct. Data does not automatically remove uncertainty, but the other options wrongly describe its purpose as confusion or waste.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
