The Most Common Factor That Contributes to the Failure of a Small

question 30

True/False

The most common factor that contributes to the failure of a small business is that the business has taken on too much debt.

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Definitions:

Extraordinary Income

Uncommon and infrequent gains not related to the normal operations of a business.

Effective Interest Amortization

A method for calculating the amortized cost of a bond or loan based on periodic interest expense, reflecting the actual interest rate.

Bonds Outstanding

The total amount of bonds that have been issued by a corporation or government entity that remain unpaid.

Retirement Entry

An accounting entry that records the removal of fixed assets or inventory from the company's records upon their disposal or sale.