Which of the following increases the chances of business failures?
A) current ratio of 2:1
B) decreasing days' sales outstanding
C) solvency ratio of greater than 20%
D) corporate maturity

Question

Quizplus · Accepted Answer

Corporate maturity refers to the age or life of a business. A new, inexperienced business is more likely to fail than a well-established one with a proven track record. Therefore, a lack of corporate maturity increases the chances of business failures. The other choices (A, B, and C) suggest healthy financial ratios, which reduce the risk of failure.

Which of the Following Increases the Chances of Business Failures