Question

why are burn rate and runway relevant for start - ups but not established businesses?
these calculations are used to measure the market share a business has in its industry.
these calculations are most useful when a business is not yet profitable.
these calculations are used to determine the profit margin of a business during normal operations.

Explanation:

Burn rate is the rate at which a start - up spends its venture capital to finance operations before generating positive cash flow, and runway is the amount of time a start - up has before it runs out of money. Established businesses are usually profitable or have stable revenue streams, so these metrics are more relevant for start - ups (which are often not yet profitable) to manage their finances. The first option is wrong as burn rate and runway don't measure market share, and the third option is wrong as they don't determine profit margin during normal operations.

Answer:

B. These calculations are most useful when a business is not yet profitable.