If a Business Is at Risk of Failing Because It

question 110

Multiple Choice

If a business is at risk of failing because it has taken on too much debt, the root cause of such excess debt is MOST likely to be ________.

• A)poor business management
• B)easy lending practices
• C)inadequate business revenue
• D)unexpected expenses

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Definitions:

Profit-maximizing Output

The level of production at which a company achieves the highest possible profit, where marginal revenue equals marginal cost.

Five Forces Model

A framework developed by Michael E. Porter used to analyze an industry's competitive forces and to shape organization’s strategy accordingly.

Oligopoly

A market structure characterized by a small number of firms controlling a large portion of the market, potentially leading to limited competition and higher prices for consumers.

Market Demand Curve

A graphical representation showing the relationship between the price of a good and the total quantity of the good that all consumers in the market are willing to purchase at that price.