One of the most pressing challenges for entrepreneurs is to maintain adequate levels of cash. Which of the following is the best way to ensure that a lack of cash does not bankrupt your startup?
A) Raise initial capital.
B) Give your customers, both businesses and individuals, generous credit terms.
C) Carefully monitor your burn rate.
D) Avoid accepting too much early capital in exchange for diluting your equity.
E) Answers A and B.

Question

Quizplus · Accepted Answer

Carefully monitoring your burn rate helps ensure that you are aware of how quickly you are spending your cash, allowing you to make necessary adjustments to avoid running out of funds.

One of the Most Pressing Challenges for Entrepreneurs Is to Maintain