Which of the Following Is the Shortest Path to Failure

question 47

Multiple Choice

Which of the following is the shortest path to failure in business?

• A)Inflexibility
• B)Undercapitalization
• C)Rent increases
• D)Competition
• E)Changing market demand

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Definitions:

Operating Assets

Assets that are utilized in the daily operations of a business to generate revenue, excluding investment and non-operational assets.

Margin

The difference between the selling price of a product or service and its cost, often expressed as a percentage of the selling price.

Operating Assets

Assets used by a company in its day-to-day operations to generate revenue, excluding investments and non-operational assets.

Combined Margin

A financial metric that combines various profit margins (e.g., gross, operating, net) to give a comprehensive overview of a company's profitability.