Which of the Following Is One of the "Red Flags

question 29

Multiple Choice

Which of the following is one of the "red flags" listed in the textbook that raises questions about one or more aspects of a company's business plan?

• A) It takes several days or weeks to complete.
• B) Founders that have their own money at risk.
• C) overly aggressive financials
• D) It is less than 50 pages long.
• E) It is directed towards both an external and an internal audience.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules and standards for financial reporting used in the United States.

Assets Reporting

The process of documenting and disclosing the value and details of a company’s assets in financial statements.

Net Assets

The total value of all a company's assets after subtracting liabilities; an indication of the company's net worth.

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements in the United States.