Only Two-Thirds of Start-Up Businesses Survive the First Two Years,and

question 86

Essay

Only two-thirds of start-up businesses survive the first two years,and just over half survive after five years of operation.What are the most significant reasons that account for such a high rate of start-up business failures?

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Definitions:

Restatement Second Torts

A legal treatise from the American Law Institute that summarizes the general principles of common law torts in the United States.

Reasonably Safe

A standard requiring that a product, environment, or practice should not pose significant harm to individuals when used or engaged in as intended, taking into account possible preventive measures.

Strictly Liable

Refers to the legal responsibility of a party for damages or loss, regardless of fault or negligence.

Reasonable Person

A reasonable person is a legal standard used to represent a hypothetical person who exercises average care, skill, and judgment in conduct, serving as a comparative standard in negligence cases.