If an entrepreneur increases production only after seeing social media praise and ignores real sales data, what is the flaw?
Answer and explanation
Correct answer: Decision based on selective and incomplete information
Social media praise may indicate interest in a product, but it does not prove actual purchases, market demand, or repeat buying. Increasing production without checking sales figures, orders, returns, and inventory is a decision based on selective and incomplete information. Option D would require balanced feedback analysis, including both praise and actual sales data. Exam tip: In entrepreneurship questions, check whether a business decision is based on sufficient, reliable market evidence.
Frequently asked questions
What is the correct answer to this question?
Decision based on selective and incomplete information
Why is this the correct answer?
Social media praise may indicate interest in a product, but it does not prove actual purchases, market demand, or repeat buying. Increasing production without checking sales figures, orders, returns, and inventory is a decision based on selective and incomplete information. Option D would require balanced feedback analysis, including both praise and actual sales data. Exam tip: In entrepreneurship questions, check whether a business decision is based on sufficient, reliable market evidence.
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.
