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:

Single-Firm

Refers to a market situation dominated by a single producer or service provider.

Network Externalities

Effects on a user of a product or service that depend on the number of other users of the same or compatible products or services.

Smartphone Market

The sector of the economy that deals with the production, sale, and distribution of smartphones and related services.

Societal Loss

The total loss in welfare or efficiency that a society faces, often due to inefficiencies or externalities in markets.