If a Business Is Profitable and Growing, Which of the Following

question 36

Multiple Choice

If a business is profitable and growing, which of the following is most likely to be a reason for failure?

• A) High COGS
• B) Low clientele
• C) Strong competition
• D) Failure to estimate the size of the market
• E) Insufficient financing

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Definitions:

Interest Revenue

Income that a company earns from its investments in interest-bearing accounts or securities like bonds, loans, or savings.

T Account

A graphical representation of a ledger account used in accounting to depict the effects of transactions on account balances.

Horizontal Analysis

Horizontal analysis is a financial analysis technique that compares historical financial data across different periods to identify trends and changes over time.

Balance Sheet

A report detailing a company's assets, liabilities, and equity owned by shareholders at a certain moment.