When a new business is just starting up, which of the following must be done ﬁrst?
A) Generate positive cash ﬂow through successful operations.
B) Acquire the assets both long-lived and short-lived so they can operate.
C) Acquire ﬁnancing from issuance of shares and borrowing from creditors.
D) These activities all occur simultaneously not sequentially.

Question

Quizplus · Accepted Answer

Acquiring financing is a crucial first step for a new business. It provides the necessary capital to acquire assets and begin operations, leading to the generation of positive cash flow.

When a New Business Is Just Starting Up, Which of the Following