Mel,who owns a popular restaurant,plans to expand his business.After reading favorable reviews,he decides to invest in an acquisition unaware that it is a dummy corporation.This fraud leads to significant financial losses for him,and he is forced to shut down his business.Which of the following is most likely to be the main reason for the failure of Mel's business?

Question

Quizplus · Accepted Answer

The main reason for the failure of Mel's business is ethical failure, as he invested in a fraudulent corporation without proper due diligence. This led to significant financial losses and ultimately forced him to shut down his business. Lack of motivation, strategy, commitment, or late entry into the business may contribute to business failure, but they are not the most likely reason in this particular scenario.

Mel,who Owns a Popular Restaurant,plans to Expand His Business