Which of the Following Factors Is a Positive as It

question 8

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 generate funds to finance and sustain growth
• E) absence of an existing opportunity for investors to convert equity into cash

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Definitions:

Personal Liability

An individual's legal responsibility to settle a debt or fulfill an obligation from their own assets, as opposed to the liabilities being limited to business assets.

Business Organization

A legal entity formed to conduct business activities, ranging from sole proprietorships to corporations, structured according to law and operational needs.

Household Income

The combined gross income of all members of a household, encompassing wages, salaries, benefits, and other income sources before taxes.

Dividends

Payments made by a corporation to its shareholder members, usually derived from company profits.