Economies of scale refer to lowering average cost as production decreases.

Value propositions and key activities are both parts of the Business Model Canvas.

A shortage of specialized labor is an example of operational risk.

LLC owners are called shareholders and have limited involvement in management.

Startups must verify accredited investor status under Rule 506(c).

Operational risk includes issues related to product regulation and patent protection.

Fundraising regulations apply only if securities are registered with the SEC.

The financial plan section excludes future fundraising needs to avoid alarming investors.

Please turn your head toward the webcam and clearly show both ears to verify that no earbuds, headphones, or other listening devices are being worn during the exam. Failure to comply with this requirement may result in the exam being flagged for an academic integrity violation. Answer “complete” to continue.

C corporations can carry forward net operating losses (NOLs) to offset future income.