Final answer:
The warning signal of a venture plan that might be in trouble is declining sales and cash flow. Early-stage companies face challenges in raising capital without a profit history and must sometimes offer equity. A rise in supply in the financial market usually leads to a decline in interest rates.
Step-by-step explanation:
The warning signal of a venture plan that might be in trouble is D) Declining sales and cash flow. While options A) Rapid growth and C) Increased market demand are usually positive indicators, and B) Consistent profitability is an outright positive sign for a venture's health. Declining sales indicate a reduction in consumer interest, market share, or competitive advantage, and declining cash flow can cause severe financial constraints and limit a business's ability to operate effectively.
For early-stage financial capital, startups face the challenge of proving they can pay a return on investment without having a history of profits. This often requires presenting a strong business plan, projecting financial forecasts, and sometimes offering equity to attract investors.
In the context of the financial market, a change leading to a decline in interest rates is commonly associated with C) a rise in supply of capital in the market, as this increases the availability of funds relative to demand.