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Problem regarding the small-business failure

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Reference no: EM131417757

Penelope is a very talented software engineer who starts her own small software development firm. She finances the firm from her savings. Initially, she is able to get many projects from customers and completes them successfully. However, as her business grows, she fails to make good decisions in hiring new employees, billing the clients, and negotiating prices. She eventually ends up liquidating the business. Which of the following causes of small-business failure does this scenario best illustrate?

  • Undercapitalization
  • Managerial inexperience
  • Economies of scale
  • Debt financing
  • Debt factoring

Reference no: EM131417757

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