2. Which of the following financial situations is most
analogous to the financial situation in which Japanâ€™s
Tokugawa shoguns found themselves in the eighteenth
(A) A small business borrows heavily to invest in new
equipment, but is able to pay off its debt early
when it is awarded a lucrative government contract.
(B) Fire destroys a small business, but insurance covers
the cost of rebuilding.
(C) A small business is turned down for a loan at a
local bank because the owners have no credit
(D) A small business has to struggles to meet operating
expenses when its profits decrease.
(E) A small business is able to cut back sharply on
spending through greater commercial efficiency
and thereby compensate for a loss of revenue.