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

question 21

Multiple Choice

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

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

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Definitions:

Aseptic Technique

A set of practices and procedures performed under sterile conditions to minimize the risk of infection.

Contamination

The presence of unwanted substances or impurities that can cause harm or reduce purity.

Anesthetic

A substance used to induce insensitivity to pain, typically during surgical procedures.

Scrub

(1) Claim scrubbing ensures that claims are correctly coded before being sent to the insurance company, which reduces denials and increases payments to the practice; (2) Specific and thorough hand-washing procedure performed for six minutes before taking part in any sterile surgical procedure.