INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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capital
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profit
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effort
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None of the above
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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.