Cash started a business using his personal savings. His funds were limited$,$ but he planned to run his business on the revenue generated from sales. However,

months later, he found it difficult to pay rent and other expenses. Seasonal sales and inability to secure sufficient credit from local banks made it difficult for Cash to

operate the business normally. Which cause of small$-$business failure does this scenario best illustrate?

Multiple Choice

undercapitalization

trade credit

economies of scale

debt financing

debt factoring