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An entrepreneur believes writing an estimate in a plan is proof of market demand. Which fact is correct?

Answer and explanation

Correct answer: Demand should be validated through surveys, testing, or actual purchase behaviour

An estimate in a business plan is only an assumption or forecast; it is not evidence of market demand. Demand should be checked through customer surveys, product testing, sales data, or actual buying behaviour. The entrepreneur’s own preference may generate an idea, but it does not prove customer demand. Exam tip: distinguish clearly between an estimate and validated market evidence.

Related tags

Entrepreneurship MythsMarket DemandMarket ValidationCustomer SurveysBusiness PlanningMyths About EntrepreneurshipEntrepreneurial Skills IArtificial Intelligence

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