Local businesses are more prone to bankruptcy than large businesses because they are more likely to be undercapitalized.

Question

Quizplus · Accepted Answer

Local businesses often have limited resources and may struggle to secure funding, making them more vulnerable to bankruptcy if they encounter financial difficulties. Large businesses, on the other hand, generally have more resources and access to capital, allowing them to weather economic downturns and other challenges more effectively.

Local Businesses Are More Prone to Bankruptcy Than Large Businesses