Multiple Choice
Which type of investment helps fund a business or a specific project, usually in exchange for some kind of stake in the company?
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7. Receivables and Investments
Introduction to Investments in Securities
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Which viability factor involves the potential funding of a business opportunity in the context of investments in securities?
A
Operational efficiency
B
Financial feasibility
C
Market demand
D
Regulatory compliance
Verified step by step guidance1
Understand the concept of 'viability factors' in the context of investments in securities. Viability factors are elements that determine whether a business opportunity is practical and sustainable.
Review the term 'financial feasibility.' Financial feasibility refers to the ability of a business opportunity to secure adequate funding and resources to support its operations and growth.
Analyze the options provided: 'Operational efficiency,' 'Market demand,' 'Regulatory compliance,' and 'Financial feasibility.' Consider which one directly relates to the funding aspect of a business opportunity.
Recognize that 'Operational efficiency' pertains to how effectively a business uses its resources, 'Market demand' relates to the need for a product or service, and 'Regulatory compliance' involves adherence to laws and regulations. None of these directly address funding.
Conclude that 'Financial feasibility' is the correct viability factor because it specifically involves the potential funding of a business opportunity in the context of investments in securities.
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