Four General Factors Contribute to the Failure Rate of Small

question 32

Multiple Choice

Four general factors contribute to the failure rate of small businesses.They include

• A) managerial inexperience.
• B) overcapitalization.
• C) rapid growth.
• D) the lack of an innovative spirit.
• E) managerial competence.

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Definitions:

Pareto Optimal

A state of allocation of resources in which it is impossible to make any individual better off without making at least one individual worse off, indicating an efficient distribution of goods and resources.

Endowment

The total resources available to an individual or institution, including assets, capabilities, and financial means.

General Equilibrium Analysis

A method in economics that attempts to understand how supply and demand interact across multiple markets simultaneously, and how they reach a state of balance.

Feasible Allocation

In economics, it refers to the distribution of resources or goods in such a manner that it is possible given the available supply.