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An entrepreneur increases production but does not increase distribution capacity. What is the likely effect?

Answer and explanation

Correct answer: Products may reach customers late

Increasing production creates more goods, but customers can receive them only if transport, warehouses, delivery staff, and other distribution arrangements are sufficient. If distribution capacity remains unchanged, products may wait in storage or be delivered late, which can reduce customer satisfaction. Higher production does not automatically double sales, remove storage needs, or guarantee fewer complaints, so A is the most likely effect.

Related tags

ProductionDistributionSupply-ChainIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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