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When the market was uncertain, an entrepreneur first produced a limited number of units. Which function does this show?

Answer and explanation

Correct answer: Limiting risk

Producing a small initial batch allows the entrepreneur to test demand and customer response without committing too much money or material. If the response is weak, the possible loss is limited; if it is strong, production can expand. This is calculated risk management, not expansion itself, promotion, or employee selection.

Related tags

Risk ManagementMarket TestingProduction PlanningQualities And Functions Of An EntrepreneurEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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