Question

Sam closed the doors to her home-based consulting company only two years after opening because she was tired of working 80-hour weeks. This is an example of which mistake leading to business failure?

a. failing to understand the level of commitment required
b. neglecting to plan
c. not using employees effectively
d. mishandling finances

Answer 1

Sam's loss of her business due to exhaustion from working 80-hour weeks exemplifies a failure to understand the necessary level of commitment to sustain the business.

Step-by-step explanation:

The example of Sam closing her home-based consulting company because she was tired of working 80-hour weeks is an example of failing to understand the level of commitment required for a successful business. This involves underestimating the amount of time, energy, and resources that are necessary to maintain and grow a business. The error here is not primarily related to poor planning, ineffective use of employees, or the mishandling of finances, but rather to a personal decision driven by the cost to the owner's quality of life due to an overwhelming workload.