The Long-Term Capital Commitment Required to Generate the Scale Needed

question 7

True/False

The long-term capital commitment required to generate the scale needed to ensure profitability and sustainability is a reason why developing a new business opportunity from the ground up represents significantly greater risk.

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Definitions:

Repay

The act of paying back money that was borrowed from a person or institution.

Term Deposit

A fixed-term investment held at a financial institution where money can be invested for a certain period of time, earning a predetermined interest rate.

Simple Interest

Interest measured solely on the primary amount, not factoring in compounding.

Per Annum

Annually; indicating an amount or a statistical value per year.