ECONOMICS

COST ACCOUNTING

FINANCIAL TERMINOLOGY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What term is used to describe money that is used to set up and grow the business?
A
Capital
B
Fixed Assets
C
Turnover
D
Cost of Sales
E
Fixed Liabilities
Explanation: 

Detailed explanation-1: -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.

Detailed explanation-2: -Capital is a broad term for anything that gives its owner value or advantage, like a factory and its equipment, intellectual property like patents, or a company’s or person’s financial assets. Even though money itself can be called capital, the word is usually used to describe money used to make things or invest.

Detailed explanation-3: -Startup capital is the money raised by an entrepreneur to underwrite the costs of a venture until it begins to turn a profit. Venture capitalists, angel investors, and traditional banks are among the sources of startup capital.

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