An Often Fatal Error Made by Many Small Business Owners

question 96

True/False

An often fatal error made by many small business owners is to open their businesses on a "shoestring," causing them to be undercapitalized.

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Definitions:

Receivables Balance

Receivables balance refers to the total amount of money owed to a company by its customers for goods or services delivered on credit.

Accounts Receivable Period

The standard timeframe a company needs to gather owed payments from its customers.

Sales

The transactions involving the exchange of goods or services for money, representing the major source of revenue for a business.

Merchandise

Goods to be bought and sold in the course of business, typically in a retail or wholesale setting.