Vulnerability of New Small Businesses in Economic Downturn

Very Hard Must Be True / Most Strongly Supported Inference Support

During a recent economic downturn, many small businesses reported a decline in revenue. Economists argue that small businesses are particularly vulnerable in times of economic crisis due to their limited financial reserves and reliance on local customer bases. A study conducted last year indicated that businesses with more than five years of operational history tend to survive better during economic recessions compared to newly established businesses.

Based on these findings, company analysts are predicting that the impact of the current economic downturn will disproportionately affect small businesses that have been established within the last five years.

Newly established small businesses are likely to be less affected by the downturn than older small businesses.

All small businesses are experiencing revenue decline equally during the downturn.

Small businesses that have been established for less than five years are more vulnerable to economic downturns.

The economic downturn will have a more severe impact on large corporations than on small businesses.

Established small businesses will likely face challenges but are more resilient than newly established businesses.

Hint

Submitted6.8K

Correct5.4K

% Correct80%