Assertion: In developing countries, there is no distinction between entrepreneurship and managers. The entrepreneur remains attached even to the day-to-day operations of the venture.

Reasoning: In developed countries, the distinction between the entrepreneurial and managers is very sharp. It is argued that once the project has reached a level of maturity, the entrepreneurs must move out and the managers must come in.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

The correct answer is option 2- Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

In developed countries, the distinction between the entrepreneurial focus on start-ups and managerial focus on routine is so sharp that it is argued that once the project has reached a level of maturity, the entrepreneurs must move out and the managers must come in. In developing countries, however, the concept of owner-manager seems more apt for entrepreneurship as the entrepreneur remains attached even to the day-to-day operations of the venture.