What Is the Most Common Way That Entrepreneurs Finance the Start-Up

question 64

Multiple Choice

What is the most common way that entrepreneurs finance the start-up of a new business?

• A) Self-financing from savings or credit cards
• B) Loans from friends, family, or business associates
• C) Bank loans
• D) Lines of credit
• E) Venture capital

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Definitions:

Machine-Hours

A measure of production time, calculated by the number of hours machines are operating in the manufacturing process.

Budget Variance

The difference between budgeted figures and actual figures for a particular accounting category.

Volume Variance

The difference between the expected and actual sales volumes, impacting revenue and expenses.

Manufacturing Overhead

All indirect costs associated with manufacturing a product, such as factory maintenance, utilities, and quality control.