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 (D)</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 (B)</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 (C)</p> Signup and view all the answers

What is the main concern of every entrepreneur?

<p>Creating and maintaining sufficient capital (B)</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 (D)</p> Signup and view all the answers

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

<p>Fixed capital (C)</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 (D)</p> Signup and view all the answers

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