What is the primary reason that many new businesses fail early on?

A. Poor franchising
B. Lack of financial statements
C. Publicity
D. Lack of financial resources
E. Too many financial resources

Question

17-06-2024
Business

Answered

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What is the primary reason that many new businesses fail early on?

A. Poor franchising
B. Lack of financial statements
C. Publicity
D. Lack of financial resources
E. Too many financial resources

Sagot :

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-06-17T02:10:02-04:00

Final answer:

Many new businesses fail early on due to a lack of financial resources in their early stages of operation.

Explanation:

The primary reason many new businesses fail early on is due to a lack of financial resources. When businesses are in their early stages and have not yet demonstrated profitability, it can be challenging to attract investors or secure loans. Startup firms often rely on personal savings of the owner or funding from angel investors to cover initial costs.

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