Capital Requirements = Start-Up Costs Plus Operating Requirements Minus

question 8

Multiple Choice

Capital requirements = Start-up costs plus Operating requirements minus:

• A) owner's knowledge, skills, and abilities.
• B) owner's character, credit, and credentials.
• C) owner's assets available for investment.
• D) owner's focus on competing businesses.

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Definitions:

Investment

The allocation of resources, such as capital or time, with the expectation of generating income or profit.

Capital Credit

Credits or allocations given to cooperative members based on their use or purchase levels, representing their ownership equity in the cooperative.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction.

Book Values

The value of an asset or liability according to a company's balance sheet, accounting for depreciation or amortization.