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An entrepreneur focuses entirely on a profitable customer group and ends service to smaller customers. What is the social and strategic risk?

Answer and explanation

Correct answer: Inclusion may fall and the business may become dependent on one segment

Targeting a profitable segment can be reasonable, but complete dependence on it increases concentration risk if its income, preferences, or competition changes. Ending service to smaller groups may also reduce inclusion and exclude people who still need the offering. The decision should weigh financial viability, social impact, and alternative service models. Thus A captures both risks.

Related tags

Customer-SegmentInclusionIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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