Entr.2B U6L1 WS

What is the term for the initial funding used to create a business?

• Capital

• Revenue

• Seed money

• Profit

What is one early challenge for every business owner?

• Finding customers

• Estimating costs

• Hiring employees

• Choosing a location

What is the first step in calculating start-up costs?

• Hiring employees

• Figuring out the start-up cost categories

• Launching the business

• Setting product prices

What is NOT a feature of operating expenses?

• Directly tied to sales

• Incurred through normal operations

• Often occur regardless of sales

• Categorized as administrative

What are operating expenses?

• Costs directly contributing to making a product

• Costs related to salaries, rent, and website hosting fees

• Costs for purchasing raw materials

• Costs for advertising and marketing

What type of costs do operating expenses represent?

• Direct costs

• Indirect costs

• Variable costs

• Fixed costs

What is the role of the business owner in setting financial goals?

• To follow government regulations

• To set monetary goals for the company

• To manage employee relations

• To design marketing strategies

How do operating expenses affect a business's financial planning?

• They are irrelevant to financial planning

• They help in budgeting and forecasting

• They are only considered at year-end

• They are deducted from profits

What is a potential benefit of setting personal financial goals for a business owner?

• Increased tax liability

• Personal financial security

• Higher operating expenses

• Reduced business growth

Why might a business incur bank charges as an operating expense?

• To increase sales

• To manage financial transactions

• To reduce employee salaries

• To expand product lines