What Is the Worst Thing That Could Happen to Small

question 83

Multiple Choice

What is the worst thing that could happen to small business owners who use credit cards as a source of financing?

• A) They might have to get a second credit card to pay for additional expenses.
• B) They might need to significantly increase their revenues.
• C) They might pay fines for using personal cards for business purchases.
• D) They might spend more than they can afford to pay back.
• E) They might need to ask for an increase in their credit limit.

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Definitions:

Economies of Scale

The cost advantages that a business obtains due to expansion and the scaling up of production, leading to a reduction in per-unit costs.

Division Manager

An individual responsible for overseeing a specific segment or division within a company, including its performance, operations, and strategy.

Production Goal

A target set by a business or an organization regarding the amount and quality of goods or services to be produced within a certain timeframe.

Pace of Production

The rate at which goods are manufactured or produced in a given timeframe.