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Susan started a cake decorating business that failed. She is convinced that she lacked the necessary funds to promote her business and get it off the ground. Susan experienced?
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Susan started a cake decorating business that failed. She is convinced that she lacked the necessary funds to promote her business and get it off the ground. Susan experienced?

User Kalithlev
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1 Answer

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Answer: Undercapitalization

Step-by-step 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.

User Nkm
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