The What Went Wrong? Feature for Chapter 8 Focuses on Wise

question 4

Multiple Choice

The What Went Wrong? feature for Chapter 8 focuses on Wise Acre Frozen Treats, a company that made organic popsicles from unrefined sweeteners. According to the feature, Wise Acre Frozen Treats failed largely because it ________.

• A) grew too quickly, which overwhelmed its cash flow
• B) was not careful enough in preparing its pro forma financial statements
• C) was not efficient in the way it utilized its assets
• D) spent too much money on marketing
• E) did not compare its financial ratios to industry peers

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Definitions:

Extinct Species

Species that no longer exist; having no living members.

Biotic Pollution

The introduction of harmful living organisms into ecosystems, leading to negative effects on native species and their habitats.

Unregulated Hunting

Hunting without restrictions or oversight, which can lead to overexploitation and significant declines in wildlife populations.

Biodiversity Hotspot

A region with a high amount of biological diversity that faces significant threats from human activities.