Jodi owns a business that designs and creates lingerie. In an effort to get her product into as many stores as possible, Jodi has been lenient on the terms of collection, allowing stores at least 30 days credit. As a result, it is taking her too long to collect payments and her revenues are very low. What is the MOST likely cause of Jodi's business difficulties?

Question

Quizplus · Accepted Answer

Jodi's business difficulties stem from inadequate financial management, specifically in her lenient credit terms that are causing slow payment collections and low revenues. It is unlikely that the issue is related to expanding too rapidly, spending too much time on product design, or not developing enough goodwill.

Jodi Owns a Business That Designs and Creates Lingerie