Use your own words to explain it. Please NO handwriting. NO copying. In determin

Question

Use your own words to explain it. Please NO handwriting. NO copying.

In determining startup costs, how do these functions, in the greater picture of our economy, play into planning a business?

What might be the most significant startup cost for a business, regardless of industry or business strategy? Consider the ideas of capitalization, the concept of capitalism, the idea of profitability.

In developing a so called ‘ecosystem’ of support, what do you think are the elements that contribute more to the potential of a small business success?   Justify your answer.

Explanation / Answer

Firslty, start up cost menas the cost which will be incurred during creation of new business, there are different type of start up cost depending on the nature of the business structure.

Before statrding the business, one of the most important part that the decision makers or the policy makers hs to do is to determine the initial cost for the creation of business, such as capital, loacations, and the human populations. this means as in the economic terms, the first problems arise is 'from whom to produce' thus the producers will chose the good or the commodity for to produce so that it will meet the needs of the society.

On the other hand the geographical locations, which also determine the structure of the creation of new business. Thus, the business will have to establish in such locations where there is more populations, labour avilable, communications and transportation avilable all this should be undertaken into decision making before starding the business

In regardless to the industry or any other business structure, the first significant motive is to identified the location or the supply of the raw materilas, suppose a firms wants to start a new business or the industry say stell industry for that, the location of the industry is where thre is an avaliblity of water , transportation, Iron and other interlink manufacturing industries which is essentials for the stell industry.

Most of the industry or the business, are associated with the capitalisation, where there is a lot of capital and transformation will be needed for the setting up of the industry. on the other hand the cost and benefit should also enjected to find out the best poddible way of the establishing of the industry.

Every business man or the firms is to maxamise the profit after meeting the average total cost to its marginal cost. But this will also make a good renovation for the betterment of the society and the growth of economy mostly in the developing nations.

Developing countries is always associated with resorces constraints evenif the natural resources is enough to extract. On of the main problems in developing countries with low cost of technology, their cost management and the social benefit is very low, thus to start the huge industry the calculation or the accounting of the damage of the ecosystem, environmental effect has to be estimated, for all of this threr is a ned of the advance machines or the technology like in the developed countries like USA, JAPAN, etc.

Thus in setting up of the startup cost, there is a good conduct for the upliftment of the small business or the cottage industries in the rural sectors or the small business like hotel, resturent, etc which opertate in the city or towns.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.