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:

Triple Bottom Line

The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth.

Sustainable Growth

Refers to an achievable growth rate that a company or economy can maintain without running into problems.

Profit Responsibility

The accountability of individuals or departments within an organization to meet specific profit targets or financial performance metrics.

Firm

A business organization, such as a corporation or partnership, engaged in commercial, industrial, or professional activities.