Explanation should include projecting
- startup costs and cash shortfall until break-even
- short-term liabilities
- long-term liabilities.
Process/Skill Questions:
- What is the most common source for financing a new business? Why?
- How do startup costs differ from personal costs?
- What are examples of one-time startup costs? What are the types of expenses that occur monthly? What are typical sources of startup capital?
- What are types of startup financing? How does an entrepreneur determine the amount of personal investment and the amount to acquire from outside sources?
- What financial statements can help an entrepreneur get a loan?
Teacher Resources: