Asked by Aseel Babedain on Jun 28, 2024
Verified
The process of determining initial capital requirements for a business begins with identifying ______.
A) long-term liabilities
B) short-term and long-term equity
C) short-term and long-term assets as well as expenses
D) financing requirements
Initial Capital Requirements
The initial amount of money needed to start a business or investment, covering costs like equipment, inventory, and leasing.
Long-Term Assets
Are resources or investments owned by a company expected to provide value for more than one year, such as land, buildings, machinery, and intellectual property.
- Understand the method for identifying initial capital needs and the importance of pro forma financial statements.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
C
Explanation :
The process starts with identifying both short-term and long-term assets as well as expenses to understand the capital needed to start and operate the business effectively.
Learning Objectives
- Understand the method for identifying initial capital needs and the importance of pro forma financial statements.