Aisha Has Been Successfully Running a Salon for Over a Year

question 81

Multiple Choice

Aisha has been successfully running a salon for over a year. She decided to use her profits and expand her business by selling her homemade organic hair care products. This involved miscellaneous costs that exhausted her funds, and she had to file for bankruptcy. Which of the following is most likely the main reason for Aisha's failure?

• A) Lack of commitment
• B) Poor financial control
• C) Ethical failure
• D) Late entry into the business
• E) Lack of motivation

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Definitions:

Order Fulfillment Department

The division within a company that is responsible for processing customer orders and ensuring they are delivered to the correct address in a timely manner.

Variable Costs

Costs that change in proportion to the level of goods or services produced or sold.

Fixed Costs

Expenses that remain constant regardless of the level of production or sales activity, such as rent, salaries, and insurance premiums.

Variable Service Department Costs

Expenses in a service department that fluctuate in direct proportion to changes in the level of service activity or volume.