The Major Source(s) of Outside Financing for an Entrepreneurial Start-Up

question 88

Multiple Choice

The major source(s) of outside financing for an entrepreneurial start-up are ___.

• A) debt financing and equity financing
• B) governmental grants
• C) foundation grants
• D) alternatives a and b
• E) alternatives a and c

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes towards covering fixed costs and generating profit.

Income from Operations

The earnings generated from a company's core business operations before subtracting interest and taxes.

Profit-Volume Chart

A graphical representation that shows the relationship between a company's profits and its level of output or sales volume.

Total Sales

The sum of all revenues earned from selling goods or services within a specific period.