Which of the Following Factors Is a Positive as It

question 27

Multiple Choice

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

• A) inconsistent and slow growth in sales during the first five to seven years in a clearly defined market niche
• B) high percentage of recurring revenue
• C) inability to forecast income and expenses with a reasonable degree of accuracy
• D) reliance on externally generated funds to finance and sustain growth
• E) absence of an existing opportunity for investors to convert equity into cash

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Definitions:

Input

Resources such as labor, materials, and capital that are used in the production process to create goods and services.

Derived Demand

is the demand for a good or service that results from the demand for another good or service. For instance, the demand for steel is derived from the demand for cars.

Factors of Production

The resources of land, labor, capital, and entrepreneurial ability.

Final Goods

Products that have completed the manufacturing process and are ready to be used or consumed by the end-user.