Before taking on a business opportunity, one should know if there is which of the following for a product?

• A. Excess inventory
• B. Low employee turnover
• C. Sufficient market demand
• D. High production cost

Answer: (C)

Verified step by step guidance

1. Understand the concept of market demand: Market demand refers to the total quantity of a product or service that consumers are willing and able to purchase at a given price over a specific period. It is a critical factor in determining the viability of a business opportunity.
2. Analyze why sufficient market demand is essential: Without sufficient market demand, a product may not generate enough sales to cover costs or achieve profitability, making the business opportunity unsustainable.
3. Evaluate the other options provided: Excess inventory indicates overproduction or lack of sales, which is a negative factor. Low employee turnover is related to workforce stability but does not directly impact the viability of a product. High production cost can reduce profitability and is also a negative factor.
4. Recognize that sufficient market demand is the correct answer: It ensures that there is a customer base willing to purchase the product, which is fundamental for the success of any business opportunity.
5. Apply this understanding to decision-making: Before pursuing a business opportunity, conduct market research to assess demand, identify target customers, and ensure the product aligns with consumer needs and preferences.