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If an entrepreneur checks demand and storage capacity before increasing production, which skill is shown?

Answer and explanation

Correct answer: Planned expansion

Direct answer: Option A. Checking demand and storage capacity before increasing production shows planned expansion. The reasoning is step by step: estimate how many customers may buy, compare that demand with present production, check whether finished goods can be stored safely, consider money and available space, and then increase output gradually. This reduces unsold stock, waste, storage problems, and unnecessary financial risk. Option A is correct because it describes expansion based on information and preparation. Option B is wrong because carelessness means acting without checking important facts. Option C is wrong because studying demand is actually a way of responding to customers, not neglecting them. Option D is wrong because promotion is about communicating with customers; it does not describe checking production demand and storage. Memory cue: before expanding, check “demand, capacity, cost.”

Related tags

Home-ScienceEntrepreneurshipProduction-Planning

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