Money Used or Needed to Set Up a New Business

question 90

Multiple Choice

Money used or needed to set up a new business is ________.

• A) an incubator fund
• B) seed money
• C) an initial public offering
• D) public financing
• E) an advisory board loan

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Definitions:

Planning Budget

A financial plan that outlines anticipated revenues, expenses, and resources over a specific period.

Fixed Cost

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance.

Variable Cost

A cost that varies directly with the level of production or sales volume, such as materials and labor.

Cost Formula

An equation used to determine the total cost of production, including fixed and variable components, to assess profitability and price-setting.