Theoretical knowledge is crucial for several reasons:
1. Framework for Decision-Making: It provides a structured framework for decision-making, helping managers and entrepreneurs to analyze situations, predict outcomes, and make informed choices. 2. Understanding Market Dynamics: It helps in understanding market dynamics, consumer behavior, and economic trends, which are essential for strategic planning. 3. Problem-Solving: Theoretical models and principles offer tools for effective problem-solving and innovation. 4. Building Competence: It builds a foundation of competence and credibility, which is vital for career advancement in the business world.