Question

Which test of a business plan involves proving that a market for the product or service really does exist and that the company can produce the product or provide the service at a reasonable​ cost?

Answer 1

Reality test of a business plan involves proving that a market for the product or service really does exist and that the company can produce the product or provide the service at a reasonable​ cost.

Explanation:

An entrepreneur must be successful in the business he starts as he takes ;lot of risks with that. It is very essential for an entrepreneur to create a business plan before taking any forward steps in the business. Performing the reality check will help an entrepreneur to ensure that he is in the right track of the business.

In the reality check, an entrepreneur gets to know about the viability of the market, his own strength and weakness and the financial position for the production of the products. It helps an entrepreneur to know about the demands that exists for his product and how can he produce those products or services as reasonable cost.