What is estimated to cause about one third of all business failures?

The correct response is based on the understanding that a significant number of business failures can be attributed to internal factors, specifically related to management systems and practices. While theft, whether from employees or outsiders, can negatively impact a business's bottom line, the major underlying issue is often attributed to management decisions and capabilities.

Bad management encompasses a spectrum of issues such as poor strategic planning, ineffective organizational structures, inadequate resource allocation, or failure to adapt to market changes. These shortcomings can lead to inefficient operations, low employee morale, and ultimately, financial losses severe enough to drive a business into failure.

This understanding underscores the importance of strong management practices in sustaining a business and highlights that while theft can be problematic, it is the overall management of the organization that plays a crucial role in its survival and success. In summary, bad management is a comprehensive issue that can influence many aspects of a business and is often a prime factor in overall business performance and longevity.