Once a new venture has passed the startup stage, additional value is created by all of the following EXCEPT
A) its position in the market.
B) significant customers.
C) a low return on equity.
D) effective operating systems.
E) a strong gross margin.

Question

Quizplus · Accepted Answer

A low return on equity typically indicates that a company is not using its equity financing effectively to generate profits, which does not add value to a venture after the startup stage. In contrast, a strong market position, significant customers, effective operating systems, and a strong gross margin all contribute to the creation of additional value.

Once a New Venture Has Passed the Startup Stage, Additional