Which of the Following Factors Is a Negative as It

question 13

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:

Discrete Random Variable

A variable that can take on a countable number of distinct values, often representing the outcomes of some random process.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent values under a given set of parameters or conditions.

Binomial Probability Distribution

A probability distribution that summarises the likelihood that a value will take one of two independent values under a given set of parameters or assumptions.

Probability Of Success

Refers to the chance that a given event will occur, often denoted in statistics by the symbol p.