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29 Jan 2024, 02:30
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
83% (01:10) correct
17%
(01:21)
wrong
based on 128
sessions
History
Date
Time
Result
Not Attempted Yet
Financial Advisor: Company B has monthly expenses that amount to thousands of dollars, but the company has not created any revenues yet. Still, several leading entrepreneurs have recently decided to invest in it.
Which of the following might best explain the Financial Advisor's report in light of Company B's status?
A. The company's products or services are sold in a particularly lucrative market.
B. A high percentage of Company B's projected profit is expected to be reinvested into the company to encourage further growth.
C. The financial advisor who wrote the article has met with the founders of Company B several times.
D. Much of Company B's expenses are spent on wages, as their product relies on the employees skill.
E. Company B is in the process of developing its flagship product, which, upon release is expected to become a huge success.
Which of the following might best explain the Financial Advisor's report in light of Company B's status?
A. The company's products or services are sold in a particularly lucrative market.
B. A high percentage of Company B's projected profit is expected to be reinvested into the company to encourage further growth.
C. The financial advisor who wrote the article has met with the founders of Company B several times.
D. Much of Company B's expenses are spent on wages, as their product relies on the employees skill.
E. Company B is in the process of developing its flagship product, which, upon release is expected to become a huge success.
29 Jan 2024, 05:07
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IMO it's (E)
Since people are investing, that means company must be working towards something which will generate strong profit in coming years.
Since people are investing, that means company must be working towards something which will generate strong profit in coming years.
29 Jan 2024, 07:47
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A. The company's products or services are sold in a particularly lucrative market.
If the market is lucrative, so profits are expected to be huge. Conflicts with argument logic, so not correct.
B. A high percentage of Company B's projected profit is expected to be reinvested into the company to encourage further growth.
Doesn't make any sense for investing attractiveness. Not correct.
C. The financial advisor who wrote the article has met with the founders of Company B several times.
Doesn't make any sense for investing attractiveness too. Not correct.
D. Much of Company B's expenses are spent on wages, as their product relies on the employees skill.
This option just explains why this Company B has such costs, but doesn't touch investment attractiveness. Not correct.
E. Company B is in the process of developing its flagship product, which, upon release is expected to become a huge success.
Partly explains the amount of costs and points out that successful product is coming which implies that investors might be interested in that company.
As for me this is very tricky question, but I believe the answer is E.
If the market is lucrative, so profits are expected to be huge. Conflicts with argument logic, so not correct.
B. A high percentage of Company B's projected profit is expected to be reinvested into the company to encourage further growth.
Doesn't make any sense for investing attractiveness. Not correct.
C. The financial advisor who wrote the article has met with the founders of Company B several times.
Doesn't make any sense for investing attractiveness too. Not correct.
D. Much of Company B's expenses are spent on wages, as their product relies on the employees skill.
This option just explains why this Company B has such costs, but doesn't touch investment attractiveness. Not correct.
E. Company B is in the process of developing its flagship product, which, upon release is expected to become a huge success.
Partly explains the amount of costs and points out that successful product is coming which implies that investors might be interested in that company.
As for me this is very tricky question, but I believe the answer is E.
