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29 October, 18:41

Entrepreneurs often underestimate the financial requirements of launching a business or the amount of time required for the company to be self-sustaining. This refers to:

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  1. 29 October, 18:45
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    The correct answer is: under-capitalization.

    Explanation:

    Under-capitalization refers to the state in which a company runs out of money to pay its creditors pushing them to request loans from financial institutions. Normally, this situation arises when the firm did not outline a correct budget to keep the business up and running or incurred in operations that were not part of it.
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