A primary cause of failure of new companies is that .

Question

Quizplus · Accepted Answer

Insufficient cash flow is a primary cause of failure for new companies, as they may not have enough resources to operate long enough to generate positive cash flows from their operations. This often requires debt or equity financing, but if they are unable to secure such funding, it can lead to failure. The other options, such as double taxation and fraud, may contribute to company failure, but they are not primary causes.

A Primary Cause of Failure of New Companies Is That