Many new businesses fail not because they are unprofitable, but because
A)they do not have the expertise to maintain the business.
B)they run out of cash.
C)they do not have adequate inventory.
D)there is a declining demand of the products.

Question

Quizplus · Accepted Answer

Even profitable businesses can fail if they run out of cash. Cash flow is essential to a business's survival, and many new businesses struggle with managing their finances and ensuring they have enough working capital to sustain operations. As a result, cash flow problems are a common reason why new businesses fail.

Many New Businesses Fail Not Because They Are Unprofitable, but Because