Which of the Following Statements Is True Regarding the Profitability

question 117

Multiple Choice

Which of the following statements is true regarding the profitability of new businesses?

• A) It may take several years for a new business to begin showing a profit.
• B) Profitability is not an important issue for new businesses.
• C) Most new businesses will turn a profit within the first year.
• D) If a company does not show a profit within the first year, it will fail.
• E) Most new businesses are highly profitable when they first start.

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Definitions:

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, indicating how fast prices are rising.

Canadian Dollar

The official currency of Canada, symbolized as CAD and often considered a commodity currency due to Canada's significant natural resource exports.