Susan is convinced that her new business failed because she lacked the necessary funds to do the things that it takes to get a new business up and running.Her problem apparently was:
A)a cash flow issue.
B)undervalued inventory.
C)undercapitalization.
D)inadequate financial control.

Question

Quizplus · Accepted Answer

Undercapitalization means that a company does not have enough funds to operate or expand its business. This can lead to financial difficulties such as not being able to pay for necessary expenses, causing a cash flow issue. It can also lead to undervalued inventory or inadequate financial control, but these issues are secondary to the main problem of undercapitalization.

Susan Is Convinced That Her New Business Failed Because She