Question

Jason Graham's startup, which is in the electronics industry, was launched on January 1, 2009. However, prior to its formal launch, Jason spent many hours working on his business, particularly during the feasibility analysis stage. The time and effort that entrepreneurs put into their venture, that can't be easily measured from a financial point of view, is referred to as:

A) effort equity

B) intangible equity

C) sweat equity

D) worry equity

E) fret equity

Answer 1

The correct answer is letter "C": sweat equity.

Step-by-step explanation:

Sweat equity refers to the efforts individuals make for a piece of work to meet expectations. The term is more often used in the real estate industry and business while talking about startups. In the real state industry, sweat equity refers to the work done by people to make the repairs and maintenance necessary to houses in an attempt to save money paying others to do that.

In business, sweat equity is the extra time, physical and mental work entrepreneurs dedicate to startups to make sure the new business works.

Answer 2

C) sweat equity

Step-by-step explanation:

The definitions ok sweat equity are:

1. Increase in the value of a business (beyond the money invested) created by the unpaid mental and / or physical work of the founder / owner.

2. Increase in the value of a property (beyond its purchase price) created by the hard work of the owner / occupant in improving its comforts and / or appearance.

3. An additional percentage of a company's common stock (common stock) allocated to senior executives (beyond their current stock) as additional motivation to continue working hard for the success of the company.