Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Planning

Question:
Assertion(A) - A new venture should begin with a strong management team committed to the goals of the enterprise.
Reason(R): The organisational plan help the entrepreneur to carefully evaluate and decide the legal structure for his organisation.
Options:
Both A and R are true. R is the correct explanation of A
Both A and R are true, but R is not the correct explanation of A
A is correct, but R is incorrect
A is incorrect, but R is correct.
Correct Answer:
Both A and R are true, but R is not the correct explanation of A
Explanation:
As it is important to begin the new venture with a strong management team, committed to the goals of the enterprise, it is the organizational plan that helps the entrepreneur to carefully evaluate and decide that legal structure for his organization that could affect : Long-term effectiveness of the enterprise, and• Profitability.