Which business did NOT survive the Great Depression? Select the best answer from the choices provided.
OA. North Carolina Mutual Life Insurance Company
OB. Binga Bank
O c. The Atlanta Life Insurance Company
OD. Golden Life

Binga Bank

Explanation:

Chicago's first black-owned-and-operated financial institution, had been founded in 1908 by its president, Jesse Binga. The Binga Bank was an important symbol of successful black capitalism and as such represented the hopes and aspirations of black Chicagoans. But the bank's assets were too heavily invested in mortgages to black churches and fraternal societies, many of which could not meet their payments after their members lost their jobs. Binga refused to seize the properties of these community institutions, but his restraint coupled with financial improprieties, led to the bank's failure.

Knight-Celotex, a Northfield, Ill. maker of fiberboard. Opened: 1920. Closed: June.

At its peak: When Jim Knight bought the Celotex brand in 2001, it was taking in $46 million a year in revenue. By 2006, it was up to $115 million in revenue and 500 employees in four manufacturing locations. It was the world’s largest maker of fiberboard.

What went wrong: The collapse of the construction industry. Revenue fell to an annualized rate of $50 million in the last quarter of 2008. Soon after, Bank of America which had taken over the Chicago-based regional bank that held Knight-Celotex’s loans declared the company in technical default because its debt exceeded the percentage of cash flow established in its contract. The company was sold in pieces in bankruptcy.

Looking back: “One of the key things to be aware of is who your partners are and choose them wisely,” Mr. Knight, 55, said “Although all money’s green, it’s not all the same. It can come at a terrible cost.”

Rococo, a women’s fashion boutique in Houston. Opened: August 2008. Closed: November.

At its peak: Just four months after its opening, the 1,200-square-foot shop in River Oaks Houston’s Beverly Hills was pulling in $40,000 a month in revenue. In early 2009 Houston magazine called it a top store for style.What went wrong: The owner, Jennifer Watson, 39, says sales started to spiral downward in March. “I went from $1,000 to $3,000 every day to five days in a row with zero sales,” she said. Besides the weak economy, she blames the mall owner’s decision to raze a local historical building in an expansion: “People called River Oaks Shopping Center the most hated mall in Houston.”

Looking back: Currently working as a personal assistant to a local cardiologist, Ms. Watson said she wished she’d rented from a small non-commercial landlord who might have been more flexible when times got tough.

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