Investmen Prerequisites

Question 1

the act of estimating the future financial outcomes of a business, such as its income and expenses, over a period of time.

Answer 1

Financial Forecasting

Question 2

pertain to those expenses in preparation for the official launch or start of the business.

Answer 2

Organizational and Pre-operating Costs

Question 3

long-term investments that are needed for actual business operations. They include all facilities, equipment, and tools needed to run the day-to-day operations of a business.

Answer 3

Production or Service Facilities Costs

Question 4

3 Basic Categories of Production Costs

Answer 4

a. Direct Material
b. Direct Labor
c. Factory Overhead

Question 5

refers to the purchasing of raw materials that goes with production

Answer 5

Direct Material

Question 6

this refers to the benefits, fees, salaries, and other forms of payment given to employees and staff who are dire

Answer 6

Direct Labor

Question 7

cost required in maintaining the overall production

Answer 7

Factory Overhead

Question 8

refers to the liquid assets that a business has on hand. This investment is important in entrepreneurship, for it is the source of payment for all unforeseen and planned expenses of the business as well as its short-term monetary obligations

Answer 8

Working Capital/Working Capital Investments