Question

Following are the reasons for the failure of an entrepreneurial venture.
A. Lack of market research
B. Poor financial control
C. Poor management
D. Gender of the entrepreneur
E. Caste of the entrepreneur
Choose the correct answer from the options given below:

• A. A, B, D and E are correct reasons for the failure of an entrepreneurial venture
• B. A, C, D and E are correct reasons for the failure of an entrepreneurial venture
• C. A, B, C are correct reasons for the failure of an entrepreneurial venture
• D. B, D and E are correct reasons for the failure of an entrepreneurial venture

Answer 1

The Correct Option is C

To determine the correct reasons for the failure of an entrepreneurial venture, we need to evaluate each given option as follows:

1. Lack of market research (A): Market research is essential for understanding customer needs, market trends, and competition. An absence of thorough market research can lead to a mismatch between the product and market demand, resulting in business failure. Therefore, this is a correct reason for failure.
2. Poor financial control (B): Effective financial management is critical to monitor cash flow, expenses, and funding. Poor financial control can lead to overspending, insufficient funds, and ultimately business insolvency. Thus, this is a correct reason for failure.
3. Poor management (C): Strong management skills are vital for decision-making, resource allocation, and team leadership. Ineffective management results in miscommunication, inconsistent strategies, and operational confusion, leading to failure. This is another correct reason for failure.
4. Gender of the entrepreneur (D): Gender does not inherently affect the success of a venture. Success depends on skills, market understanding, and other business acumen rather than gender. Hence, this is not a correct reason for failure.
5. Caste of the entrepreneur (E): Much like gender, caste does not directly impact entrepreneurial success. Business performance is more influenced by factors such as market conditions, strategy, and management. Thus, this is not a correct reason for failure.

Based on the analysis above, the correct reasons for the failure of an entrepreneurial venture are lack of market research, poor financial control, and poor management. Therefore, the correct answer is:

A, B, C are correct reasons for the failure of an entrepreneurial venture.