Question

Which of the following statements about startup capital is FALSE? Startup capital is the money you spend in order to create a balanced budget for your personal finances. Startup capital is the money you invest in the form of supplies, marketing, legal services, and other investments to get your business up and running. Both A and B Neither A nor B

Answer 1

Startup money or startup capital is the  money that is required to start a new business. The capital can be in the form of  office space, licenses, inventory, product development and manufacturing, marketing or any other expense.
Both statement about startup capital are true. This means that  neither statement A nor B is false.

Answer 2

One of the following options for the questions is incorrect; the right answer is Option B.

In general, startup capital is the money that is required to run a new business. Another term for startup capital is seed money. It can come from the founder’s own pockets, through investors, or via loans from a financial institution.

It should not be used to used to balance your personal budget; it should only be used for business purposes.