If a business is profitable and growing, which of the following is most likely to be a reason for failure?
A) High COGS
B) Low clientele
C) Strong competition
D) Failure to estimate the size of the market
E) Insufficient financing

Question

Quizplus · Accepted Answer

Insufficient financing can lead to a business's failure even if it is profitable and growing, because growth often requires significant investment in inventory, marketing, staff, and infrastructure before the returns on these investments are realized. Without adequate financing, a business might not be able to sustain its operations or capitalize on its growth potential.

If a Business Is Profitable and Growing, Which of the Following