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In which situation may business expansion be inappropriate?

Answer and explanation

Correct answer: The current unit has quality problems and a cash crisis

Expansion usually requires additional money, people, equipment, and management attention. If the existing unit already has quality failures and a cash crisis, adding another location or product line may spread resources too thin and multiply the same problems. The entrepreneur should first stabilize quality, control cash flow, and improve basic operations. Stable demand, repeat purchases, and reliable supply are generally signs that can support expansion when other conditions are also ready.

Related tags

Business-ExpansionQualityCash-CrisisIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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