BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There is no track record to prove the venture will be successful
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Money is scarce
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Assets are needed
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Of high interest rates
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Detailed explanation-1: -In order to rent space, buy equipment, develop new products, and market or sell your service, you’ll need some form of capital. Startup capital gives you a way to launch your business and provide for those costs until you start bringing in revenue.
Detailed explanation-2: -The majority of startup capital is provided to young companies by professional investors such as venture capitalists and/or angel investors. Other sources of startup capital include banks and other financial institutions.
Detailed explanation-3: -financial plan a set of documents that outlines the essential financial facts about a new venture Financial plans project the viability of a new business or a project at an existing firm. Start-up capital is the money used to pay for the various assets and expenses of a new venture or business.
Detailed explanation-4: -A financial plan can be used to attract investors. A financial plan explains how a business will manage its records. A cash budget is a plan for the amount expected to be spent and earned over a given period of time. An audit is a collection, recording, and reporting of financial transactions.