You should keep reserves of at least ________ and ________.
A) 6 months of fixed operating costs, one half of the start-up investment
B) 3 months of fixed operating costs, 3/4 of the start-up investment
C) One year of fixed operating costs, one half the start-up investment
D) 3 months of fixed operating costs, one half of the start-up investment

Question

Quizplus · Accepted Answer

CMaintaining reserves of at least 6 months of fixed operating costs and one half of the start-up investment (A) or one year of fixed operating costs and one half the start-up investment (C) provides a safety net for unforeseen financial challenges and ensures business sustainability. These options offer a balanced approach to risk management, allowing businesses to cover essential expenses and withstand periods of low revenue without immediate financial distress.

You Should Keep Reserves of at Least ________ and ________

You Should Keep Reserves of at Least and