Susan started a cake decorating business that failed.She is convinced that she lacked the necessary funds to promote her business and get it off the ground.Susan experienced:
A)Inadequate financial control.
B)Undervalued inventory.
C)Undercapitalization.
D)A cash flow issue.

Question

Quizplus · Accepted Answer

Undercapitalization refers to starting a business without sufficient funds or capital to support its operations and growth. Susan's belief that she lacked necessary funds suggests that she may have undercapitalized her business, leading to its failure. A, B, and D may also contribute to a failed business, but they do not specifically relate to Susan's situation as described.

Susan Started a Cake Decorating Business That Failed