If an entrepreneur does not estimate seasonal change in demand what loss may occur?

Correct answer: Stock and cash planning may suffer

The direct answer is A: stock and cash planning may suffer. Seasonal demand means that customers want different quantities of a product in different seasons, festivals or weather conditions. An entrepreneur must estimate this change before buying materials, producing goods or keeping inventory. If demand is underestimated, stock may finish and sales may be lost. If it is overestimated, unsold goods may remain, money may be blocked and storage costs may rise. Cash planning can also fail because money may be needed before the season, while income may arrive later. Option A is correct because it identifies both inventory and money-management risks. Option B is wrong because seasonal demand does not remain constant. Option C is wrong because customers do not increase automatically merely because planning is absent. Option D is wrong because expenses continue and may even rise through waste or storage. Memory cue: seasonal demand requires forecasting, stock control and cash planning.