When a New Business Is Just Starting Up, Which of the Following

question 102

Multiple Choice

When a new business is just starting up, which of the following must be done first?

• A) Acquire the assets both long-lived and short-lived so they can operate.
• B) Acquire financing from issuance of shares and borrowing from creditors.
• C) These activities all occur simultaneously not sequentially.
• D) Generate positive cash flow through successful operations.

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Definitions:

Wealth Of Nations

A seminal book by Adam Smith that analyses the nature and causes of the wealth of nations, laying the foundations of classical economics.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing between options.

Tuition

Tuition refers to the fee paid for instruction or teaching, typically charged by educational institutions such as colleges and universities.

Marginal Cost

The cost incurred from producing one additional unit of a product or service.