Obviously, entrepreneurial ability is needed to start a successful company. Yet many entrepreneurs who succeed in starting a company fail later for lack of managerial skills. For instance, they do not adequately analyze market trends and, consequently, they fail in managing company growth. Hence, the lack of managerial skills and the lack of entrepreneurial ability can each inhibit the development of successful companies.

Summarize Argument
The author concludes that the lack of managerial skills and the lack of entrepreneurial ability can each hinder development of successful companies. This is because entrepreneurial ability is required to start a successful company, and because bad managerial skills can lead to failure after a company has been started.

Identify Argument Part
The referenced text is an example of how bad managerial skills can lead to failure of a company after it has started.

A
It is the main conclusion drawn in the argument.
The referenced text is offered as support for the conclusion. It is not the conclusion itself.
B
It is presented as an example of the phenomenon the argument seeks to explain.
Although the referenced text is an example, the argument isn’t trying to explain a phenomenon. The argument is trying to establish that lack of certain skills can hinder development of successful companies.
C
It is meant as an aside and is not supposed to provide evidence in support of the argument’s conclusion.
The referenced text is offered as support. It’s not an irrelevant side comment.
D
It is a premise that is intended to support the argument’s main conclusion directly.
The referenced text does not support the main conclusion directly; only indirectly. It’s an example supporting the claim that many entrepreneurs fail after starting a company because they lack managerial skills. This claim in turn supports the main conclusion.
E
It is an example that is offered in support of a premise that is intended to support the argument’s main conclusion directly.
This accurately describes the role. It is an example of the premise that many entrepreneurs fail for lack of managerial skills. This premise in turn supports the conclusion that both a lack of managerial skills and the lack of entrepreneurial ability are bad for companies.

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