INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Equipment is the least expensive requirement for start-up business.
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New business owners usually need to register for patent protection.
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Purchasing a franchise is usually easy and inexpensive for start-up business owners.
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The financial needs to start a new business depend on the nature of the venture.
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Detailed explanation-1: -Which of the following statements is true about business startup requirements: The financial needs to start a new business depend on the nature of the venture. Equipment is the least expensive requirement for a startup business. Purchasing a franchise is usually easy and inexpensive for startup business owners.
Detailed explanation-2: -Most business start-ups begin with one main financial objective – to survive. Why survival? Because a large percentage of new businesses do not survive much beyond their launch. The entrepreneur discovers that the business idea is not viable – the business cannot be run profitably or it runs out of cash.
Detailed explanation-3: -The first step in starting a business is deciding what kind of business you want to establish. You need to have a unique business idea. Choose a business you are passionate about and interested in. However, research the business idea and find out the market and competitors.
Detailed explanation-4: -For entrepreneurs, there is a need for financial backing. Friends are not a commonly used source of financing as they may or may not have the required amount of money to loan. Furthermore, there is a significant financial risk associated with a startup. The most common sources of finance are debt and equity financing.