Can a firm go out of business while making an accounting profit. Think about a company that buys a lot of inventory, starts a factory running and then sells most of the product (at a price far above cost)to a customer who is slow in paying. Exactly why may the company fail?

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The Answer of Can a firm go out of business while making an accounting profit. Think about a company that buys a lot of inventory, starts a factory running and then sells most of the product (at a price far above cost)to a customer who is slow in paying. Exactly why may the company fail?

Can a Firm Go Out of Business While Making an Accounting