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An entrepreneur has limited funds but must maintain quality. Which decision is most balanced?

Answer and explanation

Correct answer: Spend on essential needs

When funds are limited, priority should go to expenses that directly support operations and quality, such as essential materials, equipment, safety, and skilled work. Decoration can wait, while reducing quality may damage trust. Borrowing should follow an assessment of purpose and repayment capacity. Therefore, spending on essential needs is the most balanced decision.

Related tags

Resource-ManagementQuality-ControlWorking CapitalFinancial ManagementBusiness StudiesClass 12 Mcq

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