Which of the Following Is NOT a Common Cause of Business

question 106

Multiple Choice

Which of the following is NOT a common cause of business failure?

• A) managerial incompetence and inexperience
• B) neglect
• C) employee theft or sabotage
• D) insufficient capital

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Definitions:

Inventory Methods

Techniques used to determine the cost of goods sold and ending inventory value, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost.

Days' Sales

A measure often used to evaluate the average time it takes for a company to convert its inventory into sales.

Lower-of-Cost-or-Market

An accounting principle that mandates inventory be recorded at the lower between its historical cost and current market value.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.