The Risk of Failure Is Greater with ______

question 8

Multiple Choice

The risk of failure is greater with ______.

• A) existing businesses
• B) franchises
• C) startups
• D) existing family-owned businesses

---

Definitions:

Shareholders' Equity

The ownership interest of shareholders in a corporation, represented by their share of the company's assets after all liabilities have been deducted.

Total Assets

The sum of all assets owned by an individual or organization, including both current and fixed assets.

Liabilities

Economic obligations of the company, such as money owed to lenders, suppliers, and employees.

Days Sales Outstanding (DSO)

A financial measure that indicates the average number of days it takes a company to collect payment after a sale has been made.