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.
Frequently asked questions
What is the correct answer to this question?
Resources, quality, and distribution capacity
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Marketing Management. Topic: Marketing mix.
