According to the Textbook, Many Entrepreneurs Go About the Task

question 2

Multiple Choice

According to the textbook, many entrepreneurs go about the task of raising capital haphazardly because they ________.

• A) are uncomfortable talking about money and they haven't written a business plan
• B) lack experience in this area and because they don't know much about their choices
• C) are focused on the nuts and bolts of starting their business
• D) haven't completed a feasibility analysis or business plan
• E) are intimidated by the process and they are unsure of how much money they need

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Definitions:

Loan

A sum of money that is borrowed, typically from a financial institution, and is expected to be paid back with interest.

Months

Units of time, each approximately 30 days long, used to measure durations and periods in a year.

Investment

Channeling funds into ventures with the expectancy of generating income or profit.

Interest

Interest is the cost of using someone else's money or the income earned from lending money, calculated as a percentage of the principal amount.