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An entrepreneur increases monthly profit by stopping equipment maintenance. What future risk is most likely?

Answer and explanation

Correct answer: Possibility of equipment failure and larger costs

Maintenance is a preventive business expense that helps equipment work safely and reliably. Stopping it may reduce costs temporarily, but wear and small defects can develop into breakdowns, production delays, unsafe conditions, and expensive repairs or replacement. Thus, the apparent monthly profit may hide a larger future loss. Options B, C, and D are not guaranteed results and do not follow from avoiding maintenance.

Related tags

Equipment-MaintenanceLong-Term-Business-RiskProfit-ManagementIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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