Any working capital that a new business needs to get started also needs to be included in start-up costs.

Question

Quizplus · Accepted Answer

Working capital refers to the money needed to cover the day-to-day operating expenses of a business, such as rent, utilities, payroll, and inventory. This is important for new businesses to have in order to sustain operations until revenue begins to flow in. Therefore, it should be included in the start-up costs of a new business.

Any Working Capital That a New Business Needs to Get