Question
In: Finance
Which of the following statements about financial capital is true? A. Financial capital is not important....
Which of the following statements about financial capital is true?
A.
Financial capital is not important.
B.
Financial capital is used to facilitate a business enterprise and can come from both investors and savings.
C.
Financial capital is something an entrepreneur does not have to worry about.
D.
Financial capital includes the physical facilities of a company.
E.
Financial capital is not used to operate a company.
Solutions
Expert Solution
Option (B) is correct
Financial capital is used to facilitate a business enterprise and can come from both investors and savings. Finance act as the blood for any business.It is the most important thing for any business. Any entrepreneur has to worry about the financial capital all the time.Financial capital used to operate a company. It does not include the physical facilities of a company. Without financial capital a business cannot survive. Because finance is needed to run all the operations of the business.Every activity will require the finance. An entrepreneur can obtain finance either from his savings or can get it from investors by issuing stocks, debt capital or loans.
jeff jeffy answered 1 year agoRelated Solutions
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