Financing New Ventures
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Questions and Answers

Which of the following is NOT a means to alleviate the concern of creating and maintaining sufficient capital?

  • Having enough money available at all times (correct)
  • Meeting long-term investment requirements
  • Obtaining money and securing credit
  • Careful financial planning and control

    • What is fixed capital?

  • Money needed to purchase physical facilities (correct)
  • Money needed for daily business operations
  • Money needed for long-term investments
  • Money needed for short-term investments

    • What is working capital?

  • Money needed to purchase physical facilities
  • Money needed for daily business operations (correct)
  • Money needed for short-term investments
  • Money needed for long-term investments

    • What is liquid capital?

    <p>Money needed for short-term investments</p> Signup and view all the answers

    Why is the entrepreneur's ability to obtain money and secure credit essential?

    <p>To sustain a healthy financial situation</p> Signup and view all the answers

    Which of the following is NOT a purpose for which an entrepreneur needs money?

    <p>Short-term investment</p> Signup and view all the answers

    What is the main concern of every entrepreneur?

    <p>Creating and maintaining sufficient capital</p> Signup and view all the answers

    Why is the entrepreneur's ability to obtain money and secure credit essential?

    <p>To sustain a healthy financial situation</p> Signup and view all the answers

    What type of capital requirement ties up capital for extended periods?

    <p>Fixed capital</p> Signup and view all the answers

    What is a means to alleviate the concern of creating and maintaining sufficient capital?

    <p>Financial planning and control</p> Signup and view all the answers

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