Which of the Following Is NOT a Factor Critical to the Success

question 12

Multiple Choice

Which of the following is NOT a factor critical to the success of project financing?

• A) separability of the project from its investors
• B) long-lived and capital intensive singular projects
• C) cash flow predictability from third part commitments
• D) All of the above are critical factors for project financing.

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Definitions:

Government Failure

Occurs when government intervention in the economy causes inefficiencies or leads to an allocation of resources that does not maximize societal welfare.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Externality

A consequence of an economic activity experienced by unrelated third parties; can be either positive or negative.

Resource Dependency

A theory in organizational studies that describes how external resources dictate the behaviors and strategies of organizations.