Which of the Following Factors Is a Negative as It

question 2

Multiple Choice

Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?

• A) Steady and rapid growth in sales during the first five to seven years in a clearly defined market niche
• B) High percentage of recurring revenue-meaning that once a firm wins a client, the client will provide recurring sources of revenue
• C) Inability to forecast income and expenses with a reasonable degree of accuracy
• D) Internally generated funds to finance and sustain growth
• E) Availability of an exit opportunity for investors to convert equity into cash

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Definitions:

Interest

The charge for borrowing money, typically expressed as an annual percentage rate, or the profit earned on money invested.

Obey

To follow or comply with commands, restrictions, or instructions, often from an authority or rule.

Contract

An agreement that is enforceable by law, involving two or more parties, which stipulates their duties and entitlements.

Ratification

The act of officially approving an agreement or treaty, often by a vote or other formal decision.