Specific Areas of Managerial Incompetence Contributing to Small Business Failure

question 15

Multiple Choice

Specific areas of managerial incompetence contributing to small business failure include:

• A) company management does not ask for help.
• B) lack of financial skill.
• C) poor or non-existent management information systems.
• D) all of the answers are correct.

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Definitions:

Short Run

A period in economics during which at least one input, such as plant size or capital equipment, is fixed and cannot be changed.

Market Price

Market price is the current price at which a good or service can be bought or sold in the marketplace.

Shut-Down Price

The price point at which a firm's total revenue equals its variable costs, below which the firm should cease operations to minimize losses.

Variable Costs

Costs that vary directly with the level of production or output.