The document states that the key reason for a decrease in business profits is B. A business tries to fix the same problem that many other businesses are trying to fix.
How is this reducing business profits ?
The text states that one of the reasons new businesses fail is because they "try to fix the same problem that many other businesses are trying to fix." This is because there is already a saturated market for these types of businesses, and it is difficult to stand out from the competition.
Option a is incorrect because it is important for businesses to have a strong foundation before they can start making profits. Option c is incorrect because businesses should not focus on identifying problems that make life difficult for people.
The full question is:
The text points to several reasons that new businesses fail: managerial incompetence, neglect, weak control systems, and insufficient capital. According to this video, what is a key reason for a decrease in business profits?
a. A business devotes too much time to the fundamentals: writing a business plan, raising money, finding staff, and engaging in marketing and public relations activities.
b . A business tries to fix the same problem that many other businesses are trying to fix.
C . A business focuses its efforts on identifying the things that make life difficult for people.
d . A business quickly brings an innovative product to market and maximizes its first-mover advantage.