Start-up companies financed by venture capitalist have a much lower failure rate than companies financed by other means. Source of financing, therefore, must be a more important causative factor in the success of a start-up company than are such factors as the personal characteristics of the entrepreneur, the quality of strategic planning, or the management structure of the company.
Type - Weaken
Boil it down - Source of financing is more causative important factor than personal characteristics of the entrepreneur, the quality of strategic planning, or the management structure of the company. for Success of company
Which of the following, if true, most seriously weakens the argument above?
(A) Venture capitalists tend to be more responsive than other sources of financing to changes in a start-up company’s financial needs.
(B) The strategic planning of a start-up company is a less important factor in the long-term success of the company than are the personal characteristics of the entrepreneur.
Out of scope as it does not talk about Financing source
(C) More than half of all new companies fall within five years. Irrelevant
(D) The management structures of start-up companies are generally less formal than the management structures of ongoing businesses. Irrelevant - management structures of ongoing business is beyond scope
(E) Venture capitalists base their decisions to fund start-up companies on such factors as the characteristics of the entrepreneur and quality of strategic planning of the company.
please explain the reasoning. Correct answer - VC funding is not more important because VCs are funding start ups based on a few factors.
Answer E
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When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long