Which of the Following Set of Characteristics Places a Startup

question 72

Multiple Choice

Which of the following set of characteristics places a startup in the strongest position to apply for equity funding?

• A) weak cash flow, high leverage, low-to-moderate growth, unproven management
• B) strong cash flow, low leverage, audited financials, good management, healthy balance sheet
• C) unique business idea, strong cash flow, low-to-moderate growth, broad market
• D) strong cash flow, high leverage, low-to-moderate growth, unproven management
• E) unique business idea, high growth, niche market, proven management

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Definitions:

Direct Labor

The wages and benefits paid to workers who are directly involved in the production of goods or the provision of services.

Raw Material

The basic material from which a product is made, typically unprocessed or minimally processed.

Direct Labor Variances

The difference between the actual costs of direct labor and the standard or expected costs, used for budgeting and financial analysis.

Direct Labor Costs

The expenses related to the wages of employees who are directly involved in the production or manufacturing of goods. This is a specific type of direct cost.