Scenario 1-2. Franky Ferguson has just reached a turning point in his business. He can no longer retain quality employees because he cannot meet his payroll, he does not have an adequate cash flow to pay his current bills, and he is three months behind in his loan payment to the bank. He must close the doors of this business.
-In Scenario 1-2, with the closing of his business, Franky has experienced ______.
A) business termination
B) business failure
C) business closing
D) business merger

Question

Quizplus · Accepted Answer

Franky has experienced business failure, as indicated by his inability to retain employees, meet payroll, maintain cash flow, and stay current on loan payments, leading to the closure of his business.