When You Use Your Own Savings to Start a Business

question 196

Multiple Choice

When you use your own savings to start a business, you make a profit

• A) after the first dollar you earn, because you borrowed no funds to start the business.
• B) after you earn an amount equal to the savings you used to start the business.
• C) only after you cover the opportunity cost of using your savings to start your business.
• D) only after you earn double the amount of money you invested.

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Definitions:

Nonprofits

Organizations that operate for charitable, educational, cultural, scientific, or social purposes rather than profit, reinvesting excess revenue in their mission.

True Needs

The basic requirements or necessities that are essential for an individual's well-being and survival.