ENTREPRENEURSHIP

INTRODUCTION TO ENTREPRENEURSHIP

IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The amount of money spent to start the business is called
A
capital
B
profit
C
effort
D
None of the above
Explanation: 

Detailed explanation-1: -The term startup capital refers to the money raised by a new company in order to meet its initial costs.

Detailed explanation-2: -For a business, revenue is all of the money it has earned. Income/profit usually incorporates other facets of a business. For example, net income or incorporate expenses such as cost of goods sold, operating expenses, taxes, and interest expenses.

Detailed explanation-3: -The cost of capital is the return that a startup must earn on its investments in order to generate value for its shareholders. In other words, it is the minimum acceptable rate of return that a startup must earn on its projects in order to justify its existence.

Detailed explanation-4: -A company’s capital is the money it has on hand to run day-to-day operations and grow in the future. One source of capital for the business is the money it makes. The value of a company’s capital would include everything it owns and all of its money.

There is 1 question to complete.