Which of the Following Is One of the "Red Flags

question 20

Multiple Choice

Which of the following is one of the "red flags" listed in the textbook that raises questions about one or more aspects of a company's business plan?

• A) Takes several days or weeks to complete
• B) Founders that have their own money at risk
• C) Defining the market size too broadly
• D) Less than 50 pages long
• E) Directed towards both an external and an internal audience

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Definitions:

Compounding

The process where the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.

Rate of Return

An indicator of the efficiency of an investment, measuring how much profit or loss has been made compared to its initial cost, represented as a percentage.

Cash Flows

The movement of money into and out of a business, representing earnings and expenses.

Project A

A specified venture or task that has been named 'Project A' for identification purposes.