A New Business Should Have Enough Capital to Operate at Least

question 10

Multiple Choice

A new business should have enough capital to operate at least how many months without earning a profit?

• A) 1
• B) 2
• C) 4
• D) 6
• E) 9

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Definitions:

Partnerships

A form of business agreement where multiple individuals jointly manage the operation and its profits.

Pooling

The act of combining resources or assets for a common purpose, often to increase efficiency or achieve a shared goal.

C Corporations

A type of corporation in the United States taxed separately from its owners, offering limited liability protection to its shareholders.

S Corporations

A type of corporation in the United States that meets specific Internal Revenue Code requirements, allowing it to pass income directly to shareholders and avoid double taxation.