Gerald Started a Business Using the Savings from His Previous

question 60

Multiple Choice

Gerald started a business using the savings from his previous job.He planned to run his business on the revenue generated from sales.However,a few months later,he found it difficult to pay his staff,rent,and other expenses.Seasonal sales and inability to secure sufficient credit from local banks made it difficult for Gerald to operate the business normally.Which of the following causes of small-business failure does this scenario best illustrate?

• A)Undercapitalization
• B)Trade credit
• C)Economies of scale
• D)Debt financing
• E)Debt factoring

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Definitions:

Scleral Venous Sinus

A circular channel in the eye that drains aqueous humor from the anterior chamber into the bloodstream.

Aqueous Humor

The clear fluid filling the space in the front of the eyeball between the lens and the cornea, maintaining pressure and providing nutrients to the eye.

Auditory Tube

The tube that connects the middle ear cavity with the nasopharynx, helping equalize pressure between the middle ear and atmosphere.

Crista Ampullaris

A sensory structure within the semicircular canals of the inner ear, critical for maintaining balance by detecting rotational movements.