Question

Which of the following factors is to be considered while selecting a product or service?

• A. Competition
• B. Cost of production
• C. Possibility of profit
• D. All of these

Hint:

A successful entrepreneur always evaluates market demand, cost, and competition before launching a product.

Answer 1

The Correct Option is D

Step 1: Understanding product/service selection.
Selecting the right product or service is one of the most crucial decisions for an entrepreneur.
It determines the future success, profitability, and sustainability of the business.
Step 2: Factors influencing selection.
An entrepreneur must consider:
- Competition: The number and strength of competitors affect pricing and market share.
- Cost of production: Determines pricing strategy and profitability margin.
- Possibility of profit: Ensures the financial feasibility of the business idea.
Step 3: Analysis of options.
- (1) Competition: Important to assess market position.
- (2) Cost of production: Determines whether production is financially viable.
- (3) Possibility of profit: Core motive for business existence.
- (4) All of these: Correct — all these factors must be evaluated together.
Step 4: Conclusion.
Thus, all the listed factors — competition, cost of production, and profit potential — must be considered before finalizing a product or service.