Solution:

What is Technology Selection?

• The requirement for technology differs from product to product depending upon the nature of the products.

• Swayed by the reported profit margins, the entrepreneurs sometimes plan for technology not possible to set up within limited financial resources.

• Thus, in the absence of technological feasibility, the enterprise is foredoomed to failure. Hence, make sure of your technological feasibility.

What is Location Selection?

• The entrepreneur often makes two types, of errors while selecting a location for their enterprises.

• First, they are completely swayed by the Government's offer of financial incentives and concessions to establish industries in a particular location.

• This becomes their sole and overriding concern completely disregarding other factors like market proximity, availability of raw materials, manpower, and infrastructural facilities.

• Second, the entrepreneurs select a location for their enterprises merely because it is their hometown or they own ancestral land there which is, however, an appropriate location. Make sure you do not fall prey to such temptations.