Mr. Samir initiated a business by obtaining a loan from the bank. He did not calculate the required amount to start a business correctly and soon run short of cash. His expectations of monthly sales were also not met. As a result, he faced problems in paying employees' salaries, and utility bills. Due to this situation, he had to close the business after few months. What is the reason for the failure of his business? a. Poor cash management b. Poor customer service c. Poor business idea d. Poor sales

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 3A: You work as a cashier for a service business. Some days you are short of cash at the end of the day,...
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Mr. Samir initiated a business by obtaining a loan from the bank. He did not calculate the required amount to start a business correctly and soon run short of cash. His expectations of monthly sales were also not met. As a result, he faced problems in paying employees' salaries, and utility bills. Due to this situation, he had to close the business after few months. What is the reason for the failure of his business? a. Poor cash management b. Poor customer service c. Poor business idea d. Poor sales
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