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If two business ideas are available, on what basis should an entrepreneur choose the better idea?

Answer and explanation

Correct answer: On the basis of demand, resources, risk, and possible return

A business idea should be compared using relevant and objective criteria rather than personal liking or appearance. The entrepreneur should examine whether customers need the product, whether the required money and resources are available, what risks may arise, and whether the possible return justifies the effort. Hence, option D is correct. A name, friends’ opinions, or decoration cost alone cannot establish business potential.

Related tags

Idea-EvaluationDemandRiskReturnIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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