MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ is the money used to pay for the various assets and expenses of a new venture or business.
A
Current capital
B
Start-up capital
C
Fixed capital
D
All of the above
Explanation: 

Detailed explanation-1: -Startup capital is what entrepreneurs use to pay for any or all of the required expenses involved in creating a new business. This includes paying for the initial hires, obtaining office space, permits, licenses, inventory, research and market testing, product manufacturing, marketing, or any other operational expense.

Detailed explanation-2: -Startup costs are the expenses incurred during the process of creating a new business. Pre-opening startup costs include a business plan, research expenses, borrowing costs, and expenses for technology. Post-opening startup costs include advertising, promotion, and employee expenses.

Detailed explanation-3: -Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.

Detailed explanation-4: -KEY TAKEAWAYS. Startup capital is the money that gets raised by an entrepreneur to help cover business costs until it can turn a profit. Sources of startup capital can include traditional banks, venture capitalists, and angel investors.

Detailed explanation-5: -Capital funding is the money that lenders and equity holders provide to a business for daily and long-term needs. A company’s capital funding consists of both debt (bonds) and equity (stock). The business uses this money for operating capital.

There is 1 question to complete.