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An entrepreneur is earning a regular profit, but the number of customers is declining. Which risk should be considered?

Answer and explanation

Correct answer: The possibility of lower sales and profit in the future

A falling number of customers can indicate weakening demand, even if the business is still profitable today. If the trend continues, sales may decline and fixed costs may become harder to cover, reducing future profit. The entrepreneur should investigate customer feedback, competition, pricing, and product quality. The situation does not itself show an immediate need for staff, total machine failure, or the end of regulations.

Related tags

Customer-BaseFuture-DemandBusiness-RiskIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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