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What should an entrepreneur do when product demand is seasonal?

Answer and explanation

Correct answer: Forecast demand and plan production and cash flow

Seasonal demand rises and falls at predictable or partly predictable times. The entrepreneur should study past and current market information, forecast demand, adjust production and keep enough cash for low-demand periods. Producing the same amount all year can create waste, while ignoring data or borrowing excessively increases financial risk.

Related tags

Seasonal-DemandForecastingIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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