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

Inability to forecast income and expenses with a reasonable degree of accuracy is a negative factor as it makes it difficult to plan and budget effectively, which can lead to financial instability and potential failure of the venture. The other factors listed are positive and favorable for the financial feasibility of a business venture.

Which of the Following Factors Is a Negative as It