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A business is profitable, but employees keep leaving. Which signal should the entrepreneur take seriously?

Answer and explanation

Correct answer: A human-resource and work-environment problem

Frequent employee turnover is an important warning sign even when the business is profitable. It may point to poor working conditions, unfair pay, weak supervision, limited growth opportunities, or ineffective leadership. The entrepreneur should collect employee feedback and examine retention patterns before the problem harms productivity and service quality. The other options do not logically follow: turnover does not prove that market demand has ended, that the product is guaranteed to succeed, or that financial records are unnecessary.

Related tags

Employee-TurnoverWork-EnvironmentLeadershipIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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