If an entrepreneur takes a large loan immediately after customer numbers rise but does not check whether demand is stable, what is the weakness?
Answer and explanation
Correct answer: Weak assessment of risk and demand stability
A large loan on temporary demand can be risky. In exams, check demand stability before expansion.
Frequently asked questions
What is the correct answer to this question?
Weak assessment of risk and demand stability
Why is this the correct answer?
A large loan on temporary demand can be risky. In exams, check demand stability before expansion.
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.