Which of the Following Sets of Characteristics Places a Startup

question 71

Multiple Choice

Which of the following sets of characteristics places a startup in the strongest position to apply for equity funding?

• A) Weak cash flow, high leverage, low-to-moderate growth, unproven management
• B) Strong cash flow, low leverage, audited financials, good management, healthy balance sheet
• C) Unique business idea, strong cash flow, low-to-moderate growth, broad market
• D) Strong cash flow, high leverage, low-to-moderate growth, unproven management
• E) Unique business idea, high growth, niche market, proven management

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Definitions:

Multiplier

In economics, it refers to the factor by which gains in total output are greater than the change in spending that caused it, often associated with fiscal and monetary policy impacts.

MPC

The marginal propensity to consume, which represents the proportion of an increase in income that gets spent on consumption.

Government Spending

Expenditures by government entities on goods and services, including infrastructure, public services, and social welfare programs.

GDP

Totaling the market value of all final goods and services produced inside a country within a set period results in the Gross Domestic Product.