Which of the Following Factors Is a Negative as It

question 2

Multiple Choice

Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?

• A) Steady and rapid growth in sales during the first five to seven years in a clearly defined market niche
• B) High percentage of recurring revenue-meaning that once a firm wins a client, the client will provide recurring sources of revenue
• C) Inability to forecast income and expenses with a reasonable degree of accuracy
• D) Internally generated funds to finance and sustain growth
• E) Availability of an exit opportunity for investors to convert equity into cash

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Definitions:

Theory Perseverance

Proposes that once the mind draws a conclusion, it tends to stick with that conclusion unless there is overwhelming evidence to change it.

Counterfactual Thinking

Imagining alternatives to past or present events or circumstances.

Illusory Correlation

The perception of a relationship between two variables when none exists, often leading to confirmation of erroneous beliefs.

Magical Thinking

The belief that one's thoughts, words, or actions can influence the outcome of events in the physical world in a manner not governed by the laws of physics or logic.