Which of the Following Increases the Chances of Business Failures

question 3

Multiple Choice

Which of the following increases the chances of business failures?

• A) increasing provision for doubtful accounts
• B) current ratio of 2:1
• C) liabilities that exceed market value of assets
• D) book value of assets that exceed liabilities

---

Definitions:

Maintenance Expenses

Costs incurred to keep property, equipment, or assets in efficient operating condition, not improving but merely maintaining them.

Square Footage

A unit of area measurement equal to a square that is one foot on each side, commonly used to measure the size of an area such as real estate or interior spaces.

Administration Expenses

Expenses that relate to the overall management and operations of a business, such as salaries of executive personnel, legal and professional fees.

Square Footage

The area measurement of a space, typically used in real estate to describe the size of a building or room, measured in square feet.