In business and legal circles a Red Flag is known as an Issue, Risk, Alert, Challenge and Warning with respect to a business strategy, plan or proposal. A Red Flag needs to be explored to determine the implications, possible ramifications, downside or disasters-in-waiting of such strategy, plan or proposal. It may have been something that was overlooked or where unrealistic expectations were set. Noticing these Red Flags and applying a thorough examination and testing the assumptions made can save entrepreneurs and corporations thousands of dollars and hundreds of hours of time.