Is there a way for Steve to test the demand of his product? Should he be concerned about getting too few or too many orders for his canoes? How should he deal with this uncertainty?

        In order to estimate the demand of its product Steve should perform market analysis. Through market analysis Steve can analyze the latest trends and the preferences of its customers. The market analysis will allow Steve to estimate the demand of its product accurately and the corporation can produce goods according to the demand efficiently. The market analysis is the best approach to reduce the level of uncertainty.

Would you advise Steve to proceed with starting this business?

    It is recommended that Steve should perform market analysis to evaluate the demand of its product. After evaluating the demand the business should set price which it thinks would lead to significant amount of profit. For setting price Steve should perform break even analysis to determine how much units would be required to achieve break even.