Which of the following factors is a negative as it pertains to the financial feasibility of a business venture?
A) steady and rapid growth in sales during the first five to seven years in a clearly defined market niche
B) high percentage of recurring revenue-meaning that once a firm wins a client, the client will provide recurring sources of revenue
C) inability to forecast income and expenses with a reasonable degree of accuracy
D) internally generated funds to finance and sustain growth
E) availability of an exit opportunity for investors to convert equity into cash

Question

Quizplus · Accepted Answer

The inability to forecast income and expenses with a reasonable degree of accuracy is a negative factor for the financial feasibility of a business venture. It can lead to financial uncertainty and risk, making it difficult to secure funding or attract investors. Steady and rapid growth in sales, high percentage of recurring revenue, internally generated funds, and availability of an exit opportunity are all positive factors that improve the financial feasibility of a business venture.

Which of the Following Factors Is a Negative as It