Question

Korey is planning to open a comic book store, but has determined that he does not have enough money to cover the cost of opening the store and running the store for the first year. Which of the following is not something Korey should consider to meet his operational costs?
a.
Rely on profits to cover missing costs.
b.
Take out a business loan to cover costs.
c.
Reduce initial inventory to lower opening set-up costs.
d.
Approach investors who would be willing to provide the missing funds.


Please select the best answer from the choices provided

A
B
C
D

Answer 1

A — Relying on future profits to cover immediate shortfalls is not a reliable way to meet operational startup costs.