Final answer:
A hospital is an example of a business where there is a relatively constant rate of loss when systems are down, due to the continuous and critical nature of healthcare services and constant demand. The option (C) is correct.
Step-by-step explanation:
An example of a business that experiences a relatively constant rate of loss when systems are down would be a hospital. In a hospital, systems such as electronic health records, patient monitoring, and communication networks are critical. When these systems go down, not only is patient care potentially compromised, but there is also a direct and ongoing loss of revenue since services cannot be rendered and billed properly. In contrast to variable losses that might occur in retail stores or software development companies based on varying customer presence and project deadlines, a hospital's losses are more constant due to the steady demand for healthcare services.
Losses are a serious concern for any business, representing a 'black thundercloud'. Whether in the short run or the long run, if losses persist, firms may have to shut down or reduce production, a process known as exit. This is a fundamental concept where sustained losses lead to business closure or scale reduction. Therefore, option (C) is correct.