Question

Given below are two statements:
Statement I : Family businesses are always interested to handover the charge of their business to next generation.
Statement II: Most of the start-up originate from the established family business. In the light of the above statements, choose the most appropriate answer from the options given below

• A. Both Statement I and Statement II are correct
• B. Both Statement I and Statement II are incorrect
• C. Statement I is correct but Statement II is in correct
• D. Statement I is incorrect but Statement II is correct

Answer 1

The Correct Option is C

To determine the correct answer, we need to evaluate the validity of each statement regarding family businesses and start-ups:

1. Statement I: "Family businesses are always interested to handover the charge of their business to next generation."
   • This statement is generally considered true since family businesses often aim to maintain family control and legacy by passing the business on to their descendants. This is a common tradition in many cultures and is a significant aspect of family business dynamics.
2. Statement II: "Most of the start-up originate from the established family business."
   • This statement is incorrect. While some start-ups may originate from or be supported by family businesses, it is not factual to claim that "most" start-ups have such an origin. Start-ups frequently begin as independent ventures by entrepreneurs and innovators seeking to address new market opportunities or challenges. The start-up ecosystem is rich with diversity, and many arise from ideas outside the traditional family business structure.

Given this analysis, the correct answer is: Statement I is correct but Statement II is incorrect.