Critical Thinking: Assessing Market Demand
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Critical Thinking: Assessing Market Demand

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Questions and Answers

Which of the following is a characteristic of a financially feasible business venture?

  • Reliance on externally generated funds
  • High percentage of recurring revenue (correct)
  • Absence of an exit opportunity for investors
  • Inconsistent and slow growth in sales

    • What is an indicator of a business venture's financial feasibility?

  • Lack of an exit opportunity for investors
  • Inability to forecast income and expenses
  • Reliance on external funding
  • High percentage of recurring revenue (correct)

    • What is a key consideration when evaluating the financial feasibility of a business venture?

  • Steady and rapid growth in sales
  • Ability to forecast income and expenses (correct)
  • High percentage of recurring revenue
  • Availability of external funding

    • What is a drawback of a business venture that relies on externally generated funds to finance and sustain growth?

    <p>Lack of control over financial decisions</p> Signup and view all the answers

    Which of the following is a characteristic of a financially unfeasible business venture?

    <p>Inability to forecast income and expenses</p> Signup and view all the answers

    What is an advantage of a business venture with a high percentage of recurring revenue?

    <p>Improved ability to forecast income and expenses</p> Signup and view all the answers

    Why is it essential to evaluate the financial feasibility of a business venture?

    <p>To assess the venture's potential for growth and profitability</p> Signup and view all the answers

    What is a potential benefit of a business venture with an exit opportunity for investors?

    <p>Improved ability to attract investors</p> Signup and view all the answers

    What is a characteristic of a financially feasible business venture?

    <p>High percentage of recurring revenue</p> Signup and view all the answers

    Which of the following is a disadvantage of a business venture with an inability to forecast income and expenses?

    <p>Increased uncertainty in financial planning</p> Signup and view all the answers

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