Many small firms have a tendency to underestimate the amount of capital the business requires when beginning operations.

Question

Quizplus · Accepted Answer

This is true because small businesses often have limited resources and may not have enough financial backing to cover all the necessary expenses. As a result, they may not adequately plan for startup costs and may struggle to finance their operations in the early stages of the business.

Many Small Firms Have a Tendency to Underestimate the Amount