Miles' startup company began well, but within a couple months he found he was unable to pay invoices from suppliers. He didn't understand how he could have this problem. He hired experts; his business idea was sound; and he had many new customers. What went wrong?
A) Miles lacked critical technologies.
B) Miles lacked patents or copyrights.
C) Miles lacked raw materials.
D) Miles lacked cash resources.

Question

Quizplus · Accepted Answer

Miles' inability to pay suppliers suggests a lack of cash flow or financial resources. Despite having a sound business idea and new customers, without enough money to pay for expenses, the business cannot sustain itself.

Miles' Startup Company Began Well, but Within a Couple Months