Which Is the Most Important Reason for the Failure of Small

question 94

Multiple Choice

Which is the most important reason for the failure of small business?

• A) Poor marketing
• B) Managerial incompetence
• C) Loss of interest in the business
• D) Fraud
• E) Poor production capabilities

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Definitions:

LIFO

"Last In, First Out," an inventory valuation method where the last items placed in inventory are the first ones sold.

Ending Inventory

The final value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Income Statement

A financial document outlining a company's revenue, expenses, and profits over a specific period, showing its ability to generate earnings.

Specific Invoice Method

An approach to managing accounts payable where payments are matched to specific invoices.