When Someone States, "I Don't Have Money to Start a Business

question 20

Multiple Choice

When someone states, "I don't have money to start a business," what fact might one consider?

• A)Most businesses start without any formal investment.
• B)This is a valid reason for not starting a business.
• C)Formal investment will be needed to make a successful company.
• D)People who have no money cannot start a business.

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Definitions:

Operating Segments

Components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are reviewed regularly by the enterprise's chief operating decision maker.

Reportable

Refers to information or events that must be disclosed or reported to regulatory authorities or in financial statements according to legal or regulatory requirements.

U.S. GAAP

The Generally Accepted Accounting Principles in the United States, a set of accounting rules and standards used for financial reporting.

Major Customer

A client who contributes a significant portion of a company's revenue, often crucial to the company's financial health.