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malfutka [58]
3 years ago
12

Susan started a cake decorating business that failed. She is convinced that she lacked the necessary funds to promote her busine

ss and get it off the ground. Susan experienced?
Business
1 answer:
rosijanka [135]3 years ago
4 0

Answer: Undercapitalization

Explanation:

Susan's cake decoration business suffered from Undercapitalization.

Undercapitalization occurs when a business is not properly funded to maintain it's running. Undercapitalization is mainly common in small scale businesses with little start up capital.

Undercapitalization can cause inability to pay for: workers wages, rent, transportation of business supplies.

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