1. Given the fact pattern below showing monthly customer cancellations in 2022, what is the quarterly customer retention rate (%) in Q2 2022?Customers on March 1, 2022 200

• Customers cancelling in March 8
• Customers cancelling in April 5
• Customers cancelling in May 7
• Customers cancelling in June 6
• Customers cancelling in July 12
• Customers cancelling in August 10

A) 91.0%

B) 87.0%

C) 90.6%

D) 76.0%

E) None of the above

2. Altitude Private Equity is considering an investment in ZipZoom Inc., a tech company specializing in video communication software. During the due diligence process, Altitude discovers that 60% of ZipZooms revenue comes from a single client, TechSolutions Ltd. Considering the potential risks associated with customer concentration, which of the following is the most pertinent concern for Altitude Private Equity in this scenario?

A) Altitude might not be able to secure sufficient debt financing due to the perceived riskiness of ZipZooms revenue stream.

B) The loss of TechSolutions as a client could substantially decrease the profitability of ZipZoom and could potentially lead to its financial distress.

C) ZipZooms high reliance on a single client may lead to increased competition as competitors will try to diversify their customer base.

D) The customer concentration could lead to an increase in ZipZooms operating costs as they might have to customize their products specifically for TechSolutions.