Asked by Aseel Babedain on Jun 28, 2024

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The process of determining initial capital requirements for a business begins with identifying ______.

A) long-term liabilities
B) short-term and long-term equity
C) short-term and long-term assets as well as expenses
D) financing requirements

Initial Capital Requirements

The initial amount of money needed to start a business or investment, covering costs like equipment, inventory, and leasing.

Long-Term Assets

Are resources or investments owned by a company expected to provide value for more than one year, such as land, buildings, machinery, and intellectual property.

  • Understand the method for identifying initial capital needs and the importance of pro forma financial statements.
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ZK
Zybrea KnightJul 03, 2024
Final Answer :
C
Explanation :
The process starts with identifying both short-term and long-term assets as well as expenses to understand the capital needed to start and operate the business effectively.