Possible explanations for inadequate profitability include all of the following except for:
A) expenses are too high.
B) selling prices are too low.
C) borrowing costs too low.
D) excessive investment in assets in relation to revenues.

Question

Quizplus · Accepted Answer

If borrowing costs are too low, it can actually improve profitability by lowering interest expenses. Therefore, C is the only option that does not explain inadequate profitability.

Possible Explanations for Inadequate Profitability Include All of the Following