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Entrepreneurial Opportunity — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipEntrepreneurial Opportunity4 Marks
Question
Name the parameters against which an idea is tested and explain any one with a suitable example.
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Answer

An idea should be tested against the following parameters:
  1. Product or service identification.
  2. Application and use.
  3. Level of operation.
  4. Competition.
  5. Cost.
  6. Technical complexity.
  7. Annual turnover and profit.
Cost: Cost per unit of a product at various levels should be determined. It helps in fixing price and profit margin considering price of competitors' product. e.g. Tata Nano sold at the lowest price still generating margin for company.

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