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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Which statement is true about business start-up requirements?
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Equipment is the least expensive requirement for a start-up business.
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A new business owner usually needs 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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Explanation:
Detailed explanation-1: -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-2: -Fixed Capital Requirement: In order to begin a business, money is required to buy fixed assets like land, building, plant and machinery. This is called the Fixed Capital Requirement. Working Capital Requirement: A business needs funds for its day to day activities. This is known as Working Capital Requirements.
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