For a new venture, the likelihood of incurring __________ in the first year is very high.
A) large negative cash flows
B) a significant equity to debt ratio
C) large positive cash flows
D) a significant profit to cash flow ratio
E) None of the answers apply.

Question

Quizplus · Accepted Answer

New ventures often face high initial costs and expenses, leading to large negative cash flows in the first year before they can establish a steady revenue stream.

For a New Venture, the Likelihood of Incurring __________ in the First