In which situation has the entrepreneur wrongly assessed an opportunity?
Answer and explanation
Correct answer: Producing a large quantity without checking demand
Opportunity assessment requires evidence about customer demand, competition, costs, and feasibility. Producing a large quantity without checking demand commits resources before the market is understood and can create unsold inventory and losses. Customer discussions, small tests, and cost-price comparisons are appropriate ways to reduce uncertainty before expansion.
Frequently asked questions
What is the correct answer to this question?
Producing a large quantity without checking demand
Why is this the correct answer?
Opportunity assessment requires evidence about customer demand, competition, costs, and feasibility. Producing a large quantity without checking demand commits resources before the market is understood and can create unsold inventory and losses. Customer discussions, small tests, and cost-price comparisons are appropriate ways to reduce uncertainty before expansion.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Business Environment. Topic: Importance of business environment.
