The First Place an Entrepreneur Should Look for Startup Capital

question 7

Multiple Choice

The first place an entrepreneur should look for startup capital is ________.

• A)a bank
• B)a venture capitalist
• C)the Small Business Administration
• D)his own savings

---

Definitions:

Long-Run Equilibrium

A state in which all factors of production and inputs in a market are fully adjusted to any economic changes, showing no tendency for further adjustment.

Competitive Price-Searcher Market

A market in which the firms have a downward-sloping demand curve, and entry into and exit from the market are relatively easy.

Positive Economic Profit

Earnings that exceed both the explicit and implicit costs of a company, indicating a financial gain beyond the normal expectations of profit.

Maximum Economic Profit

The highest possible financial gain obtainable by a firm when total revenue exceeds both explicit and implicit costs.