What Is the True Litmus Test for a Venture Concept

question 10

Multiple Choice

What is the true litmus test for a venture concept?

• A) Whether or not the customer sees value in the concept and is willing and able to pay for it
• B) Whether or not customers are at least willing to try your product
• C) An experiment that proves your prototype works
• D) Whether or not the customer reacts positively to the concept

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Definitions:

Sellers

Individuals or entities that offer goods or services for sale to consumers or other businesses, participating in economic transactions.

Tax

A compulsory financial charge or some other type of levy imposed by a governmental organization on individuals or entities to fund public expenditures.

Price

The sum of money needed to buy a product, service, or property.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the higher price they actually receive.