If a woman entrepreneur knows branding but not cost calculation, what is the main risk?
Answer and explanation
Correct answer: Incorrect pricing and low profit
Cost calculation includes expenses such as raw materials, labour, transport, rent and other overheads. Without it, an entrepreneur cannot set an appropriate selling price. Pricing too low can reduce profit or cause a loss, while pricing too high may reduce sales. Branding may attract customers, but it cannot replace correct cost and profit calculation. Exam tip: before fixing a selling price, add total cost and the desired profit margin.
Frequently asked questions
What is the correct answer to this question?
Incorrect pricing and low profit
Why is this the correct answer?
Cost calculation includes expenses such as raw materials, labour, transport, rent and other overheads. Without it, an entrepreneur cannot set an appropriate selling price. Pricing too low can reduce profit or cause a loss, while pricing too high may reduce sales. Branding may attract customers, but it cannot replace correct cost and profit calculation. Exam tip: before fixing a selling price, add total cost and the desired profit margin.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Women and work: issues and concerns.
