Many new business fail not because they are unprofitable,but because
A)they do not have the expertise to maintain the business.
B)they run out of cash.
C)they do not have adequate inventory.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Running out of cash is a common reason why new businesses fail because they may not have enough capital to cover initial startup costs and sustain the business until it becomes profitable. Even profitable businesses can fail if they do not have sufficient cash flow to continue operating.

Many New Business Fail Not Because They Are Unprofitable,but Because