Three Sisters Bakery in Chicap faled because the carey were overly optimistic about how soon they would start earing fhat some entrepreneurs fall because d __ A. look B. managerial competence C. insufficient captal D. hard work and dedication E. market demand for products and services

## Step 1<br />The problem presents a situation where a business, Three Sisters Bakery, fails due to the owners' overoptimism about their profitability. The question asks us to identify the reason for this failure from the given options.<br /><br />## Step 2<br />We need to analyze each option and determine which one is most likely to cause a business failure due to overoptimism.<br /><br />## Step 3<br />Option A, "look," is not a valid reason for business failure. It doesn't provide any context or meaning in this situation.<br /><br />## Step 4<br />Option B, "managerial competence," is also not a likely cause of failure due to overoptimism. While poor management can lead to business failure, it's not directly related to overoptimism about profitability.<br /><br />## Step 5<br />Option C, "insufficient capital," is a common reason for business failure. If a business is overly optimistic about its profitability, it may not invest enough in necessary resources, leading to insufficient capital. This can hinder the business's ability to grow and compete, leading to failure.<br /><br />## Step 6<br />Option D, "hard work and dedication," is not a likely cause of failure due to overoptimism. While hard work and dedication are important for business success, they are not directly related to overoptimism about profitability.<br /><br />## Step 7<br />Option E, "market demand for products and services," is also not a likely cause of failure due to overoptimism. While market demand is important for business success, it's not directly related to overoptimism about profitability.