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Sarah Has What She Thinks Is a Great Idea for a Small

question 40

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Sarah has what she thinks is a great idea for a small business. She has developed a new toy that her baby sister loves playing with. She has $10,000 in savings she can use toward the business. What is the first step she should take in launching her business in Canada?


Definitions:

Interest Rate

The percentage of a loan amount charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage.

Miller-Orr Model

A financial model used for managing cash flows and cash reserves, focusing on maintaining balances within certain limits at minimum cost.

Upper Limit

The maximum value or level that is allowed or attainable in a given situation.

Miller-Orr Model

A financial model used to manage cash balances by setting upper and lower limits on cash reserves within which no financing is needed.

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