Which of the Following Is the Most Significant Disadvantage of Starting

question 73

Multiple Choice

Which of the following is the most significant disadvantage of starting a business from scratch?

• A) Having few employees
• B) Inability to franchise
• C) Having competition
• D) Coming up with new ideas
• E) The risk of failure

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Definitions:

Investment Account

An account held at a financial institution that is used to buy and hold various investment securities, such as stocks and bonds.

Corporate Existence

The state of being recognized as a separate entity with legal rights and obligations, typically achieved through incorporation.

Fair Value

The financial gain from trading away an asset or the investment needed to dissolve a liability in a negotiated agreement amongst market stakeholders at the time of valuation.

Par Value

The face value of a bond or stock as stated by the issuer.