Question

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

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

Hint:

Opportunity identification is about looking outward. The key is to analyze the external environment (PESTLE - Political, Economic, Social, Technological, Legal, Environmental) to find gaps that your business can fill.

Answer 1

The Correct Option is C

Step 1: Understanding the Question:
The question asks which factor influences or is part of the process of identifying business opportunities.
Step 2: Analysis of Options:
Let's examine each option.

(A) Volume of internal demand: This term is slightly ambiguous. If it means demand within the company, it's not relevant to external opportunities. If it means demand within the country (domestic demand), then it is a source of opportunity, but "Existing opportunities in the environment" is a broader and more accurate term.

(B) Created opportunity: An opportunity can be "created" through innovation. However, this describes a type of opportunity, not a factor that affects the *identification* process itself. One identifies the potential to create an opportunity.

(C) Existing opportunities in the environment: This is a core concept in entrepreneurship. Entrepreneurs scan the business environment (economic, social, technological, etc.) to identify existing gaps, unmet needs, or problems that can be turned into business opportunities. This is a direct factor that affects the identification process.

Step 3: Final Answer:
The process of identifying business opportunities fundamentally involves searching for and recognizing existing possibilities within the broader business environment. Therefore, (C) is the most accurate and comprehensive answer.