Which of the following factors is a positive as it pertains to the financial feasibility of a business venture?
A) inconsistent and slow growth in sales during the first five to seven years in a clearly defined market niche
B) high percentage of recurring revenue
C) inability to forecast income and expenses with a reasonable degree of accuracy
D) reliance on externally generated funds to finance and sustain growth
E) absence of an existing opportunity for investors to convert equity into cash

Question

Quizplus · Accepted Answer

A high percentage of recurring revenue is a positive factor as it provides stability and predictability in the business's financials, making it easier to forecast income and expenses with a reasonable degree of accuracy. It also reduces the reliance on external funding to sustain growth. Inconsistent and slow growth, reliance on external funding, and absence of an existing opportunity for investors to convert equity into cash are negative factors that can hinder the financial feasibility of a business venture.

Which of the Following Factors Is a Positive as It