Question

Which of the following is incorrect regarding the "total startup cash needed" component of financial feasibility analysis?

a)There are worksheets posted online that help entrepreneurs determine the startups costs to launch their venture.
b)If the company will come from friends and family or is raised through other means, a reasonable plan should be stipulated to repay the money.
c)It's not necessary to complete an actual budget of startup expenses.
d)An explanation of where the startup funds will come from should be included.

Answer 1

The correct answer is c) It's not necessary to complete an actual budget of startup expenses.

Step-by-step explanation:

The correct answer is c) It's not necessary to complete an actual budget of startup expenses.

Completing an actual budget of startup expenses is an essential step in the financial feasibility analysis. It allows entrepreneurs to have a clear understanding of the total startup cash needed for their venture. By estimating and including all the expenses involved in starting a business, such as equipment, inventory, marketing, and employee salaries, entrepreneurs can determine the amount of funding required to launch their startup successfully.

Therefore, option c) is incorrect as completing an actual budget is necessary for an accurate assessment of the financial feasibility of a startup.