Cicada Inc. is a small firm involved in the design and manufacture of residential and commercial furniture. The company has recently identified an attractive opportunity that would serve their growth and revenue plans well, but Jack Walters, one of the company's founding members, vehemently opposes the idea.
-Which of the following, if true, would most weaken Jack's argument?
A) Other companies that have ventured into this area have met with mixed results.
B) Increased working capital can lead to a liquidity crunch for the firm.
C) The firm has not made any significant investments in the recent past.
D) The investment required is minimal and complements the company's existing lines of business.
E) The firm will have to overcome several entry barriers to take advantage of this opportunity.
Correct Answer:
Verified
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