If an entrepreneur adopts every new demand immediately without testing, what risk exists?
Answer and explanation
Correct answer: Loss from investing resources in an untested idea
Before adopting a new demand, an entrepreneur should check the market, cost, customer response and feasibility. Investing time, money or materials in an untested idea can lead to poor sales and loss of resources. Options B and C are incorrect because market risk cannot be completely removed and success is never guaranteed. Exam tip: remember that entrepreneurs usually test a new idea on a small scale before full implementation.
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What is the correct answer to this question?
Loss from investing resources in an untested idea
Why is this the correct answer?
Before adopting a new demand, an entrepreneur should check the market, cost, customer response and feasibility. Investing time, money or materials in an untested idea can lead to poor sales and loss of resources. Options B and C are incorrect because market risk cannot be completely removed and success is never guaranteed. Exam tip: remember that entrepreneurs usually test a new idea on a small scale before full implementation.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Entrepreneurship: definition and characteristics.
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