INTRODUCTION TO ENTREPRENEURSHIP
ENTREPRENEURIAL PROCESS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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At what point can a business survive on its own without cash infusions from outside sources?
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Feasibility
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Viability
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Sustainability
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Profitability
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Explanation:
Detailed explanation-1: -Bringing in outside investors often eliminates the need for any personal guarantees, further reducing the owners’ risk. You have a strong leadership or management team, some of whom want an equity stake in the company. Usually these leaders and managers lack personal capital to buy into the business.
Detailed explanation-2: -For example, during the start-up phase, 100% of operations may be funded by bootstrapped cash until the company earns revenue from customers.
Detailed explanation-3: -Business viability means that a business is (or has the potential to be) successful. A viable business is profitable, which means it has more revenue coming in than it’s spending on the costs of running the business.
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