Which of the Following Set of Characteristics Places a Startup

question 72

Multiple Choice

Which of the following set 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:

High-low Method

A technique used in managerial accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

High-low Method

A technique used in cost accounting to determine the variable and fixed components of a cost by analyzing the highest and lowest activity levels.

R-squared

R-squared is a statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

High-low Method

A technique used in managerial accounting to estimate fixed and variable costs associated with production or business operations based on the highest and lowest levels of activity.