Question

Knowing how much cash is needed in the bank for the first few months when the business first opens refers to _____.

1) listing what will be spent on items needed to start the business
2) listing what will be spent on expenses to start the business
3) determining how much money is needed to get started
4) none of the above

Answer 1

The correct answer is option 3) determining how much money is needed to get started.

Step-by-step explanation:

The correct answer is option 3) determining how much money is needed to get started. When starting a business, it is crucial to have an accurate estimate of the initial cash needed in the bank to cover expenses for the first few months. This includes not only the items and materials needed to start the business (option 1), but also the various expenses associated with starting the business (option 2).