A local service entity is a popular business enterprise where many customers choose to patronize because of its superb brand of service. The owner, who is related to most people on island, is so generous that she allows family members avail of the service either for free or on credit. So, most relatives take advantage of this.

All of a sudden, its workers complained of unfair labor practice, because they do not get paid correctly and on time. One by one, they left and moved on to more prosperous business establishments. The customers also did the same. Eventually, the business closed.

What can be the root cause of the problem?

Group of answer choices

a) Liquidity

b) Solvency

c) Profitability

d) Cost and Expense Management