Question

Which three factors make starting a business a highly risky investment?

A.)high coupon rate
B.)uncertain business conditions
C.)large amount of capital
D.)low interest rates
E.)low liquidity

Answer 1

B,C, and E

Explanation: PLATO ANSWER and also took the test and got it right :)

Answer 2

The correct options are B, C and E.
Starting a business can be a risky move because of some elements which are involved in creating a new business. For instance, large amount of capital is needed to start a typical business and the uncertain conditions which prevails in the business world can make one to lose one's capital in no time at all. The extent to which assets can be converted to cash is also one of the risks that one must considered.