When Venture Capitalists Ask About the "Scalability" of a Project

question 11

Multiple Choice

When venture capitalists ask about the "scalability" of a project, they are questioning:

• A)Its attractiveness beyond rational facts
• B)Its attractiveness in terms of cost and leveraging potential
• C)Its potential to mine untapped markets with weak competition
• D)The potential replication of knowledge from a craft-based enterprise to a larger operation

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Definitions:

Net Income

A measure of profitability that calculates the total revenue minus total expenses, taxes, and costs.

Book Value

The net value of a company's assets, excluding intangible assets, as recorded on the balance sheet, often compared to the company's market value.

Depreciating Equipment

The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value of equipment.

Monthly Depreciation Expense

The portion of the total depreciation of an asset that is allocated for a particular month.