Should the above scenario arise, the investor should:
- State their concerns.
- Ask for more specific information.
What should the investor do?
The investor stands to make some losses if they go into this venture as there is a good chance that things will not work out. They should therefore state these concerns to the entrepreneur.
They should then ask for specific information such as market analysis and income projection methods and assumptions.
In conclusion, the investor should try to find out how the entrepreneur arrived at those figures.
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