BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ is the money used to pay for the various assets and expenses of a new venture or business.
A
Current capital
B
Start-up capital
C
Fixed capital
D
All of the above
Explanation: 

Detailed explanation-1: -Startup capital is the money raised by an entrepreneur to underwrite the costs of a venture until it begins to turn a profit.

Detailed explanation-2: -Startup costs are the expenses incurred during the process of creating a new business. Pre-opening startup costs include a business plan, research expenses, borrowing costs, and expenses for technology. Post-opening startup costs include advertising, promotion, and employee expenses.

Detailed explanation-3: -Capital funding is the money that lenders and equity holders provide to a business for daily and long-term needs. A company’s capital funding consists of both debt (bonds) and equity (stock). The business uses this money for operating capital.

Detailed explanation-4: -Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.

Detailed explanation-5: -Startup capital is the money a business owner needs to start up a new company. This funding helps the business meet its initial costs, such as office space or equipment. Raising startup capital is an important step in the process of launching a new business.

There is 1 question to complete.