18 Questions
What is the primary purpose of working capital in a business?
To cover expenses like rent, salaries, and utilities
What type of capital is needed to expand a business once it is established and profitable?
Growth Capital
What is the point at which a business's income equals its expenses?
Break-even point
What is the term for the amount of money a startup needs to launch and operate until it reaches its break-even point?
Capital requirement
What is the source of fixed capital in a business?
Entrepreneur's savings, friends, or family
What is the difference between internal and external capital sources?
Internal capital is from the entrepreneur's savings, while external capital is from beyond the means of the entrepreneur and the company
What enables entrepreneurs to effectively respond to unexpected challenges or opportunities?
Having well-defined plans and organized structures in place
Why is it common for entrepreneurs to start on a shoestring budget?
Because entrepreneurs lack financial resources
What is a key benefit of being adaptable and flexible in business?
It enables entrepreneurs to pivot their strategies and stay competitive
What is the first crucial factor in the success of a business enterprise?
Location
What is a primary concern for entrepreneurs when starting a business?
Registering the business with the government
What should you determine before acquiring machines and equipment for your business?
The level of technology to use
What is one way entrepreneurs can raise capital for their business?
By investing their own money
What is a key aspect of customer relationship management (CRM)?
Building and maintaining positive relationships with customers
What is the primary focus of early business planning?
Establishing an office and hiring support staff
What is the term for understanding the unique benefit a product offers to customers?
Value proposition
What is the primary purpose of market research?
To identify trends and customer needs
What is the term for the process of determining the type of machines and equipment needed for a business?
Determining manufacturing methods
Learn how entrepreneurs can achieve their business goals and sustain long-term growth through careful planning and organizing. Discover the importance of adaptability and flexibility in responding to unexpected challenges and opportunities.
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