Which of the Following Is Incorrect Regarding the "Total Startup

question 57

Multiple Choice

Which of the following is incorrect regarding the "total startup cash needed" component of financial feasibility analysis?

• A) It's not necessary to complete an actual budget of startup expenses.
• B) When explaining where the startup funds will come from, avoid cursory explanations such as "I plan to bring investors on board" or "I'll borrow the money."
• C) There are worksheets posted online that help entrepreneurs determine the startup costs to launch their venture.
• D) An explanation of where the startup funds will come from should be included.
• E) If the money will come from friends and family or is raised through other means, a reasonable plan should be stipulated to repay the money.

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Definitions:

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The release or dismissal of a person from their duties, obligations, or a liability, such as in bankruptcy or employment.

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A type of loan offered to individuals with poor credit scores or limited credit history, typically at higher interest rates due to perceived increased risk.

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A mortgage that involves no government backing by either insurance or guarantee.

Mortgagor

The party who borrows money and gives a mortgage to the lender or mortgagee as security for the loan.