4. How can a business survive when it's not making a profit?
5. How can a business fail when it is making a large profit?
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4. How can a business survive when it's not making a profit?
5. How can a business fail when it is making a large profit?
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Answer:
4. There are three basic ways big companies survive without profits.
*Purposeful Reinvestment – Earnings are significant and large, but the company chooses to put most of its revenues back into the business to keep propelling growth. ...
*Hopeful Expansion – Twitter is a good example of this category.
5. Many underlying factors can cause companies to fail to make profit and ultimately go out of business.
*Insufficient Demand. Every company must have demand for its products or service to achieve success. ...
*Competition. ...
*Failure to Control Costs. ...
*Market Decline.