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Multiple Choice QuestionOverall, a company must be able to cover both Blank______ costs or it will eventually fail.Multiple choice question.principal and interestgoods and servicesfinancial and operatingemployee and shareholder

Question

Multiple Choice QuestionOverall, a company must be able to cover both Blank______ costs or it will eventually fail.Multiple choice question.principal and interestgoods and servicesfinancial and operatingemployee and shareholder

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Solution

The correct answer is "financial and operating".

Step by Step Explanation:

  1. Principal and interest: These are terms related to loans. While a company does need to cover these costs if it has loans, they are not the only costs a company has to cover to avoid failure.

  2. Goods and services: These are what a company might sell to make money, not what it needs to cover to avoid failure.

  3. Financial and operating: Financial costs refer to costs like interest on loans, while operating costs refer to the day-to-day costs of running a business. A company must be able to cover both these types of costs to avoid failure.

  4. Employee and shareholder: While a company does need to pay its employees, "shareholder" costs don't make sense in this context. Shareholders invest in a company and get returns, but a company doesn't "cover" shareholder costs.

So, the correct answer is "financial and operating".

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