Assertion: The decision to extend the scope of one’s business must be a result of thoughtful consideration of various factors, including the financial, logistical, even his/her emotional readiness.
Reasoning:The rule of thumb is that one should only expand when there are untapped opportunities that can benefit the business.

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.

Assertion (A) is true: Expanding a business requires careful planning and consideration of various factors. This includes financial resources to support the expansion, logistical capabilities to handle increased operations, and even the entrepreneur's emotional readiness to handle the additional challenges that come with growth.
Reasoning (R) is also correct: Identifying untapped opportunities for the business is a crucial element in making a sound decision to expand. These opportunities could involve reaching new markets, offering new products or services, or improving efficiency. By focusing on untapped opportunities with potential benefits, the expansion is more likely to be successful.

R does not directly explain A: While both the assertion and reasoning make valid points about business expansion, they are not directly related in terms of explanation. R does not explain as to why there need for thoughtful consideration of various factors before expanding a business, including financial, logistical, and emotional readiness.