ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -These costs include costs like startup insurance fees, legal fees, registration charges, accountant’s fees, etc.. Startup costs are also referred to as startup expenses, preliminary expenses, or pre-opening expenses.

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: -An expense is a cost that businesses incur in running their operations. Expenses include wages, salaries, maintenance, rent, and depreciation. Expenses are deducted from revenue to arrive at profits.

Detailed explanation-4: -A startup cost analysis is important because it provides entrepreneurs with a roadmap for how to allocate their financial resources. The analysis can also help entrepreneurs identify potential sources of funding and assess the financial feasibility of their business idea.

Detailed explanation-5: -Startup capital is what entrepreneurs use to pay for any or all of the required expenses involved in creating a new business. This includes paying for the initial hires, obtaining office space, permits, licenses, inventory, research and market testing, product manufacturing, marketing, or any other operational expense.