Which of the Following Is Not a Primary Cause of Small

question 9

Multiple Choice

Which of the following is not a primary cause of small business failure?

• A) Floods and tornados
• B) Lack of understanding financial information
• C) Lack of financial capacity
• D) Incompetence and inexperience

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Definitions:

Financing Obsolescence

refers to the financial challenge of assets losing value over time due to technological advancements or changes in market demand.

Credit Period

The duration of time that a buyer is allowed to pay for a credit purchase.

Credit Sales

Sales of goods or services that are paid for later, rather than at the time of purchase, building a receivable account on the seller's balance sheet.

Receivables

Amounts due from customers to a company for goods delivered or services rendered, awaiting payment.