MANAGEMENT

BUISENESS MANAGEMENT

BUSINESS PLANNING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Money necessary to start and open a business; also called seed capital.
A
capital structure
B
start-up capital
C
collateral
D
assets
Explanation: 

Detailed explanation-1: -Seed capital is the money raised to begin developing an idea for a business or a new product. This funding generally covers only the costs of creating a proposal. After securing seed financing, startups may approach venture capitalists to obtain additional financing.

Detailed explanation-2: -Seed capital is the initial amount of money an entrepreneur uses to start a business. Often, this money comes from family, friends, early shareholders or angel investors. Seed capital is typically used to support the planning of a business up to the point when the company starts selling a product or service.

Detailed explanation-3: -Startup capital is the money raised by an entrepreneur to underwrite the costs of a venture until it begins to turn a profit. Venture capitalists, angel investors, and traditional banks are among the sources of startup capital.

Detailed explanation-4: -Seed financing (also known as seed capital, seed money, or seed funding) is the earliest stage of the capital-raising process of a startup. Seed financing is a type of equity-based financing. In other words, investors commit their capital in exchange for an equity interest in a company.

Detailed explanation-5: -Startup funding, or startup capital, is money that an entrepreneur uses to launch a new business. The money can come from several sources and can be used for hiring employees, renting space, buying inventory or other operating expenses that help a business get started.

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