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If demand for a product appears to be increasing, what should be checked before increasing production?

Answer and explanation

Correct answer: Resources, quality, and distribution capacity

Rising demand is an opportunity, but rapid expansion without preparation can cause material shortages, inconsistent quality, late delivery, and customer dissatisfaction. Before scaling, the entrepreneur should check finance, materials, labour, production systems, quality controls, and distribution arrangements. Office size, slogans, or hiding customer information do not establish operational readiness. Hence A is correct.

Related tags

ScalingCapacity-PlanningMarketing MixMarketing ManagementBusiness StudiesClass 12 Mcq

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