Small Business Management Study Set 2
Quiz 11: Projecting Financial Requirements
Many Small Firms Have a Tendency to Overestimate the Amount
Many small firms have a tendency to overestimate the amount of capital the business requires.
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To the greatest extent possible the entrepreneur should use other people's resources, a common way entrepreneurs accomplish more with less. This is called bootstrapping.
Unless the owner's personal living expenses during the initial period of operation are part of the business's capitalization, they need not be considered in the financial plan.
A firm's sales are the primary force driving future asset needs.
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