Which of the Following Is Least Likely to Explain Why

question 113

Multiple Choice

Which of the following is least likely to explain why entrepreneurs contribute their personal funds to start-up projects? Their contribution:

• A) acts as a signal to venture capitalists.
• B) repays debt held by the venture capitalist.
• C) retains a portion of the firm's equity.
• D) provides incentive to expend effort.

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Definitions:

Net Operating Income

Net Operating Income (NOI) is the total revenue from operations minus operating expenses, excluding taxes and interest.

Break-Even Points

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Break-Even Sales

The amount of revenue required to cover a company's total fixed and variable costs, beyond which the company starts generating a profit.

Blue Division

A hypothetical division or business unit within a company, perhaps denoted for identification or strategic purposes.