Question

Jose is opening a small restaurant. On weekends, he works with his cousin to construct the tables, chairs, and counters that will go into the restaurant. What is the name given to the result of these efforts

Answer 1

The combined efforts of Jose and his cousin in the building and creation of his small restaurant is referred to as:

• sweat equity

What is Sweat Equity?

• Sweat equity is a term used to described the contribution made during the star-up of a business, project or enterprise which are in form of hard-work or effort.

• Sweat equity is usually common for small start-ups where the owners do the actual work themselves to save cash or when they are unable to contribute financially for the start-up.

Therefore, the combined efforts of Jose and his cousin in the building and creation of his small restaurant is referred to as:

• sweat equity

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