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Enterprise Marketing — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipEnterprise Marketing1 Mark
Question
Why is pricing crucial in an entrepreneurial activity?
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Answer

In an entrepreneurial activity pricing is crucial because of following reasons:
  1. Profit: When the pre-determined price is fixed an entrepreneur can obtain predetermined profit.
  2. Source of revenue: Selling of the product is the only source of revenue for the producer. A regular sale makes the revenue regular.
  3. Determines demand: Demand is dependent on the price of the e product. Carefully fixed price by an entrepreneur does not lose its customers; on the contrary there is continuous increase in its customers.

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