Two Fatal Flaws Can Render a Business Model Untenable from the Beginning

question 38

Multiple Choice

Two fatal flaws can render a business model untenable from the beginning. These are:

• A) failure to compete a business plan and failure to get funding
• B) a complete misread of the customer and utterly unsound economics
• C) failure to copy the industry leader's business plan and a complete misread of the customer
• D) failure to complete a business plan and overemphasizing the importance of feasibility analysis
• E) overemphasizing the importance of feasibility analysis and utterly unsound economics

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Definitions:

Self-regulation

The process whereby an industry or profession monitors its own members' adherence to legal, ethical, or professional standards without external oversight.

Audit Standard

Guidelines or rules that auditors follow to ensure financial statements are fairly and accurately presented and in compliance with the accounting standards.

Public Company Accounting Oversight Board (PCAOB)

A nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors.