Entrepreneurship Strategies

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What is the primary purpose of working capital in a business?

To provide initial capital for starting a business

To finance the growth of the business

To cover expenses like rent, salaries, and utilities (correct)

To cover expenses for product development

What type of capital is needed to expand a business once it is established and profitable?

Fixed Capital

Working Capital

Source Capital

Growth Capital (correct)

What is the point at which a business's income equals its expenses?

Growth point

Fixed capital point

Break-even point (correct)

Capital requirement

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 Signup and view all the answers

What is the source of fixed capital in a business?

Entrepreneur's savings, friends, or family Signup and view all the answers

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 Signup and view all the answers

What enables entrepreneurs to effectively respond to unexpected challenges or opportunities?

Having well-defined plans and organized structures in place Signup and view all the answers

Why is it common for entrepreneurs to start on a shoestring budget?

Because entrepreneurs lack financial resources Signup and view all the answers

What is a key benefit of being adaptable and flexible in business?

It enables entrepreneurs to pivot their strategies and stay competitive Signup and view all the answers

What is the first crucial factor in the success of a business enterprise?

Location Signup and view all the answers

What is a primary concern for entrepreneurs when starting a business?

Registering the business with the government Signup and view all the answers

What should you determine before acquiring machines and equipment for your business?

The level of technology to use Signup and view all the answers

What is one way entrepreneurs can raise capital for their business?

By investing their own money Signup and view all the answers

What is a key aspect of customer relationship management (CRM)?

Building and maintaining positive relationships with customers Signup and view all the answers

What is the primary focus of early business planning?

Establishing an office and hiring support staff Signup and view all the answers

What is the term for understanding the unique benefit a product offers to customers?

Value proposition Signup and view all the answers

What is the primary purpose of market research?

To identify trends and customer needs Signup and view all the answers

What is the term for the process of determining the type of machines and equipment needed for a business?

Determining manufacturing methods Signup and view all the answers

Entrepreneurship Strategies

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