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:

Voters

Individuals who have the right to vote in elections, making choices among alternatives or candidates.

Politicians

Individuals engaged in the art or science of government, often as elected officials who develop or vote on laws and policies.

Involuntary Transactions

Economic exchanges where at least one party participates without willing consent, often resulting from coercion or lack of viable alternatives.

Economic Efficiency

A situation where all resources are allocated in a way that maximizes the net benefit to society.