Question

Which of the following factors affect the identification of business opportunities?

• A. Volume of internal demand
• B. Created opportunities
• C. Existing opportunities in the environment
• D. None of these

Hint:

Always observe market trends, consumer needs, and technological advancements — these existing opportunities often lead to successful business ideas.

Answer 1

The Correct Option is C

Step 1: Understanding Business Opportunity Identification.
The process of identifying a business opportunity involves observing and analyzing the external environment to locate gaps or unmet needs in the market.
Entrepreneurs and organizations continuously scan their surroundings to find viable opportunities that can be converted into profitable ventures.
Step 2: Factors Influencing Identification.
One of the key factors influencing opportunity identification is the presence of existing opportunities in the environment.
These opportunities often arise due to technological changes, policy reforms, social trends, or consumer behavior shifts.
Step 3: Analysis of options.
- (1) Volume of internal demand: This affects production decisions, not the identification of new opportunities.
- (2) Created opportunities: These result after identifying opportunities, not before.
- (3) Existing opportunities in the environment: Correct — these help identify new ventures and business ideas.
- (4) None of these: Incorrect — option (3) correctly matches the influencing factor.
Step 4: Conclusion.
Hence, the factor affecting identification of business opportunities is the existing opportunities in the environment.