An Investor Who Wants to Invest in Only One Start-Up

Multiple Choice

An investor who wants to invest in only one start-up business is trying to decide between two new businesses. The entrepreneurs in both businesses seem quite similar to the investor. However,they are not similar. One has much better skills than the other,who is misrepresenting his skills. The investor is facing the situation known as

A) equity apprehension.
B) breakeven syndrome.
C) adverse selection.
D) covenants.
E) cash flow condition.