Which action will be a concern for a prospective investor?
A)Having too much cash in a bank account
B)Searching for information with a trade association
C)Inadequate provision for personal expenses of the entrepreneur
D)Obtaining a line of credit before beginning operations

Question

Quizplus · Accepted Answer

Inadequate provision for personal expenses of the entrepreneur could be a concern for a prospective investor as it may indicate poor financial planning and management skills of the entrepreneur. This may raise doubts about their ability to effectively manage the investment funds. The other options (having too much cash in a bank account, searching for information with a trade association, obtaining a line of credit before beginning operations) may not necessarily be a concern for a prospective investor.

Which Action Will Be a Concern for a Prospective Investor