What must an entity do in relation to conducting business to prove it’s viable?

To prove its viability, an entity must compete actively in the marketplace. This is crucial because market competition demonstrates that the business can sustain itself, attract customers, and generate revenue. By engaging with competitors, a business can adapt its products or services based on market demand, respond to consumer needs, and establish a foothold within its industry.

Active competition also provides valuable market feedback, enables innovation, and fosters growth. It shows that the entity is not only existing but also thriving within its sector, which is fundamental for investors, lenders, or stakeholders who want assurance that the business has the potential for long-term success.

In contrast, the other options would not necessarily illustrate a business’s viability. For example, relying solely on affiliates limits market exposure and could indicate a lack of independence in generating revenue. Restricting services to one locality could result in limited customer base and growth opportunities, and sharing resources exclusively with non-competing firms may stifle collaboration and innovation, which are vital for survival in a competitive landscape.