Capital requirements = Start-up costs plus Operating requirements minus:

Question

Quizplus · Accepted Answer

Capital requirements are the total amount of funds needed to start and operate a business, including start-up costs and ongoing operating expenses. To determine the capital requirements, you need to subtract the owner's assets available for investment from the total amount needed. The owner's knowledge, skills, and abilities, character, credit, and credentials, as well as their focus on competing businesses, do not affect the calculation of capital requirements.

Capital Requirements = Start-Up Costs Plus Operating Requirements Minus