Which of the following is a common reason for small businesses to fail due to financial inadequacy? a. economic recession b. cash-flow problems c. higher interest rates d. lack of experience in managing business operations

The most common reason for small businesses to fail due to financial inadequacy is: **b. cash-flow problems** While all the options can contribute to a business's struggles, cash-flow issues are often cited as a primary reason for failure, as they directly affect the ability to meet day-to-day operational expenses. Update (2024-11-07): All of the options listed can contribute to financial inadequacy in small businesses, but **d. overlooking the insights of qualified accountants** is a particularly common reason for small businesses to fail due to financial inadequacy. Failing to utilize the expertise of accountants can lead to poor financial management, lack of proper budgeting, and missed opportunities for cost savings or tax benefits, ultimately impacting the financial health of the business.