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PRM Exam 2 Questions & Answers 2023/2024

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PRM Exam 2 Questions & Answers 2023/2024 Capital needs for setup - ANSWER-(operations taking place before business opening) Lease deposit and renovation Equipment and fixtures Inventory Licenses and permits Capital needs for start-up - ANSWER-(used just prior to business opening; 2-3 weeks before and after opening) Decorative fixtures Office supplies Promotional expenditure Types of capital and definitions - ANSWER-Working capital: money available to carry on day-to day activities Short-term capital: money borrowed to finance obligations over short time period Long-term capital: longer time period (as much as 10 years) Sources for long-term capital - ANSWER-Personal funds Equity financing (selling partial ownership to investors) Debt financing: loans with interest Sources of equity financing - ANSWER-Partner -General: helps with management -Limited: not involved in mgmt Relative

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