MODULE 4 PART 1: The Financial Aspect (Start-Up Costs)

Question 1

Refers to expenses a business incurs before its operations.

Answer 1

• Start-up Costs

Question 2

(3) Types of Start-up Costs:

Answer 2

1. Start-up Expenses
2. Start-up Assets
3. Cash

Question 3

These expenses or upfront costs occur before the business’ launch and before any revenue is generated.

Answer 3

• Start-up Expenses

Question 4

(2) Categories of Start-up Expenses:

Answer 4

1. One-time Expenses
2. Ongoing Expenses

Question 5

Examples of One-time Expenses:

Answer 5

1. Necessary Equipment like cash registers, machinery or vehicles
2. Permits and Licenses
3. Computer or Technology Equipment
4. Down payment for office or store
5. Initial inventory and office supplies
6. Signage and office renovation
7. Office or business furniture and fixtures

Question 6

Examples of Ongoing Expenses:

Answer 6

1. Rent
2. Accounting services
3. Taxes and Legal Services
4. Business Insurance
5. Payroll and employee benefits
6. OFfice Supplies
7. Utilities like gas, electricity, water, phone, and internet
8. Ongoing inventory
9. Loan or credit payments

Question 7

Refers to expenses incurred when acquiring long-term assets to initiate the business.

Answer 7

• Start-up Assets

Question 8

(5) Valuable Assets Entrepreneurs should Invest in:

Answer 8

1. Starting inventory
2. Computers or other tech equipment
3. Office Equipment
4. Office furniture
5. Vehicles

Question 9

This provides an essential assessment of a start-up company’s initial funds in its checking account.

Answer 9

• Cash