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Gerald started a business using the savings from his previous job. He planned to run his business on the revenue generated from sales. However, a few months later, he found it difficult to pay his staff, rent, and other expenses. Seasonal sales and inability to secure sufficient credit from local banks made it difficult for Gerald to operate the business normally. Which of the following causes of small-business failure does this scenario best?
a. Debt factoring
b. Debt financing
c. Trade credit
d. Economies of scale
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Answers: 3
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Gerald started a business using the savings from his previous job. He planned to run his business on...
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