A small business can fail for many reasons. Which of the following rea

QUESTION

A small business can fail for many reasons. Which of the following reasons involves financial penalties?

A) inadequate management skills
B) lack of a business plan
C) failure to file appropriate paperwork
D) inability to weather aggressive competition
E) difficulty retaining good employees

ANSWER

Answer: C
Explanation: C) Small business owners who do not have expert accounting and/or legal assistance often have difficulty with the extensive government paperwork requirements for operating a business. Missing deadlines can result in penalties and fines.