If an entrepreneur only punishes an employee for a mistake without understanding its cause, which weakness is shown?
Answer and explanation
Correct answer: Lack of root-cause analysis
The correct answer is A because effective management looks beyond the visible mistake and investigates why it occurred. The cause could be inadequate training, unclear instructions, faulty equipment, or a weak work process. Punishment alone may not remove that cause, so the same error can recur. Root-cause analysis helps the entrepreneur correct the system, guide the employee, and prevent repetition. The other options concern leadership quality, market study, and money management, not investigation of the mistake’s underlying cause.
Frequently asked questions
What is the correct answer to this question?
Lack of root-cause analysis
Why is this the correct answer?
The correct answer is A because effective management looks beyond the visible mistake and investigates why it occurred. The cause could be inadequate training, unclear instructions, faulty equipment, or a weak work process. Punishment alone may not remove that cause, so the same error can recur. Root-cause analysis helps the entrepreneur correct the system, guide the employee, and prevent repetition. The other options concern leadership quality, market study, and money management, not investigation of the mistake’s underlying cause.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
