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:

Contract

A legally binding agreement between two or more parties that outlines obligations and rights.

Transactions

Business activities or events that involve the exchange of goods, services, money, or a promise of any of these.

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Credit

Amount entered on the right side of an account.