Which of the Following Is the Contingency in the Critical

question 98

Multiple Choice

Which of the following is the contingency in the critical risks and assumptions segment of the business plan that discusses events occurring within the economy and society that could negatively affect the product/service being offered?

• A) unreliable sales forecasts
• B) competition
• C) unfavorable industry-wide trends
• D) insufficient numbers of trained employees

Evaluate strategies for improving comprehension and knowledge retention.

Understand the principles of Modigliani & Miller (M&M) Propositions I & II without taxes, specifically regarding the irrelevance of capital structure.

Comprehend the effect of leverage on the cost of equity according to M&M Proposition II with no taxes.

Grasp the impact of debt financing on a firm's value and the cost of capital when taxes are considered.

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Definitions:

Knowledge Work

Refers to tasks that involve handling or using information, often requiring analytic skills, creativity, and intellectual effort.

Participative Decision Making

A decision-making process that involves all relevant parties or team members in order to make more encompassing and democratic decisions.

Creativity

The use of imagination or original ideas to create something; inventiveness.

Organizational Politics

The use of power and influence in organizations.