Question

Which of the following IS NOT a major reason for business failure due to financial factors....

Which of the following IS NOT a major reason for business failure due to financial factors.

Select one:

a. Taking on too much debt.

b. Having insufficient capital to pay long term obligations and remain solvent.

c. Arranging poorly planned contract terms with creditors.

d. Issuing too much stock

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Answer #1

Which of the following IS NOT a major reason for business failure due to financial factors

- d. Issuing too much stock

Taking on too much debt / Having insufficient capital to pay long term obligations and remain solvent / Arranging poorly planned contract terms with creditors, are major reasons for business failure due to financial factors.

Issuing too much stock is also not good as it increases supply and may result is fall of stock price. however, it is not major reason for business failure due to financial factors

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