It goes to the stockholders
The common ways through which firms fail financially includes under-capitalization, poor control over cash flow and inadequate expense control.
Majority of firms who failed financially are those firm with outdated financial plan or lack of current trend in the industry.
Why firms fail financially includes:
- Under-capitalization which is when the firm does not have sufficient capital to conduct normal business operations and pay the creditors.
- Poor control over cash flow is when the firm does not have firm control over the cash going in and out of the organization.
- inadequate expense control is when the firm does not effectively control the amount of expenses incurred for operation.
In conclusion, the common ways through which firms fail financially includes under-capitalization, poor control over cash flow and inadequate expense control.
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<em>brainly.com/question/1675177</em>
Answer:
some firms will exit from the market
Explanation:
Roger owns a small health store that sells vitamins in a perfectly competitive market. If vitamins sell for $12 per bottle and the average total cost per bottle is $12.50 at the profit-maximizing output level, then in the long run <u>some firms will exit from the market</u>
A perfectly competitive market consist of many buyers and sellers, different products and perfect information about the price of a good.
Option A. is correct.
Answer:
hope this helps
Explanation:
The main factors that affect location decisions include regional factors, community considerations, and site-related factors. Community factors consist of quality of life, services, attitudes, taxes, environmental regulations, utilities, and development support.
The answer for this question (I think) is D. If they don't study the needs of the customers they don't know who their target group, if they don't cut costs they could waste money, and increasing promotion gains income.