If an entrepreneur depends only on friends’ opinions while making business decisions, what weakness is shown?
Answer and explanation
Correct answer: Lack of fact-based decision-making
Friends may provide useful suggestions, but personal opinions alone cannot replace customer research, sales data, cost information, competitor analysis, and testing. Depending only on friends may introduce bias and hide the actual market situation. The weakness is therefore a lack of evidence-based decision-making. The other options are capabilities that cannot be inferred from the situation.
Frequently asked questions
What is the correct answer to this question?
Lack of fact-based decision-making
Why is this the correct answer?
Friends may provide useful suggestions, but personal opinions alone cannot replace customer research, sales data, cost information, competitor analysis, and testing. Depending only on friends may introduce bias and hide the actual market situation. The weakness is therefore a lack of evidence-based decision-making. The other options are capabilities that cannot be inferred from the situation.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Nature and Significance of Management. Topic: Management concept.
