Which of the Following Is Not One of the "Red

question 23

Multiple Choice

Which of the following is not one of the "red flags" listed in the textbook that raises questions about one of more aspects of a company's business plan?

• A) founders with none of their own money at risk
• B) defining the market size too narrowly
• C) a poorly cited plan
• D) sloppiness in any area
• E) overly aggressive financials

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Definitions:

Correlation

A statistical measure that indicates the degree to which two variables fluctuate together, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).

Variance

A statistical measure that represents the dispersion or spread of a set of data points around their mean value.

Coefficient of Determination

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.

Correlation

A statistical measure that expresses the extent to which two variables change together, ranging from -1 to 1.