_____ Is at the Core of Most Business Failures

question 39

Multiple Choice

_____ is at the core of most business failures.

• A)Low interest rate
• B)Poor cash flow
• C)Inadequate planning
• D)Too much inventory
• E)A too tall hierarchical structure

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Definitions:

Break-Even

The point at which total revenues equal total costs, leading to neither a profit nor a loss.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, used to cover fixed costs and to generate profit.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Net Loss

A financial situation that occurs when a company's total expenses exceed its revenues, indicating a negative profit.