Question

A new tech company needs $2.4
million to start. The plan is to spend $800,000
on product development, $600,000
on marketing, $500,000
on employees, and $500,000
for daily costs. Investors are concerned this might not balance growth with financial safety. Which TWO financial principles help in reviewing this spending plan?

(Select the two correct answers.)

(1 point)
Responses

Assessing annual employee performance
Assessing annual employee performance

Forecasting necessary working capital
Forecasting necessary working capital

Projecting total start-up costs
Projecting total start-up costs

Analyzing the target market segments
Analyzing the target market segments

Developing a clear mission statement
Developing a clear mission statement

Calculating equity financing options
Calculating equity financing options
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Answer 1

Forecasting necessary working capital
Projecting total start-up costs

Reason: Projecting total start-up costs ensures all expenses are covered up front; forecasting working capital ensures the company can meet ongoing short-term obligations while pursuing growth.