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Which signal is most reliable before expanding an enterprise?

Answer and explanation

Correct answer: Consistent demand, profitable operations, and resource availability

Expansion increases fixed costs, operating responsibilities, and financial risk. Consistent demand shows that sales may continue, profitable operations indicate that the model can support growth, and available resources make implementation feasible. One unusually busy day or informal advice is insufficient evidence for a major expansion decision.

Related tags

Business-ExpansionDemandFinancial PlanningFinancial ManagementBusiness StudiesClass 12 Mcq

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