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An entrepreneur chooses an opportunity because competition is low but does not examine why competition is low. Which risk was missed?

Answer and explanation

Correct answer: Low competition may indicate weak demand or difficult operations

Low competition is only a signal, not proof of a good opportunity. It may exist because customers have little need, entry is difficult, regulations are restrictive, or operations are costly. The entrepreneur must investigate the underlying cause before investing. Therefore, option A identifies the missed risk.

Related tags

CompetitionMarket-RiskIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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