Question

The most common cause of business failure is ______.

a. choosing the wrong type of business ownership
b. starting a business that is too large
c. lack of marketing expertise by the small business owner
d. lack of management experience

Answer 1

The most common cause of business failure is due to lack of management experience, leading to poor management and an inability to adapt to market changes. Business failures are an intrinsic part of the market economy that allows for innovation and customer satisfaction.the right answer is d)

Step-by-step explanation:

The most common cause of business failure is lack of management experience. Poor management often leads to unproductive workers or an inability to compete with other businesses domestically or internationally. Additionally, unexpected shifts in market demand and supply can cause prices to fluctuate unfavorably for the business. The U.S. Small Business Administration data from 2011 showed that while numerous new firms were established, a significant number also failed. These failures are part of the market economy and can be considered a necessary component for a market-oriented system to thrive by satisfying customers, maintaining low costs, and creating innovative products.