Which of the Following Is Not a Common Mistake of Entrepreneurs

question 40

Multiple Choice

Which of the following is not a common mistake of entrepreneurs?

• A)Underestimating costs
• B)Finding a lack of comparable companies
• C)Underestimating the time required to secure financing
• D)Underestimating power of going public
• E)Expecting to generate revenues within too short of a timeframe

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Definitions:

EPS Growth Rate

The yearly rate at which a firm's earnings per share (EPS) increases or is expected to increase.

Rate Of Return

The financial gain or loss achieved on an investment during a predetermined period, shown as a percentage of the investment's initial outlay.

Stock Price

The cost of purchasing a share of a company's stock. It is determined by the supply and demand for the stock in the market.

Dividends

Dividends issued by a firm to its investors, typically funded by the company’s profit.