ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Startup capital refers to the money that entrepreneurs raise to meet the costs of starting a business venture. Common sources of startup capital often include angel investors, venture capitalists, and banks.

Detailed explanation-3: -What is the optimal capital structure for a startup? The ideal balance between debt and equity that results in a low WACC (weighted average cost of capital) is known as the optimal capital structure.

Detailed explanation-4: -Key Takeaways The capital of a business is the money it has available to pay for its day-to-day operations and to fund its future growth. The four major types of capital include working capital, debt, equity, and trading capital.

Detailed explanation-5: -Coasting, opportunity comes to them (or it doesn’t) Conservative (very moderate use of resources, protecting existing resources) Aggressive (proactive, all-in, actively seeks opportunity) Innovator/Revolutionary (attains growth through innovation)