Money needed to find the normal day to day operations of a business is:
Answer & explanation
Correct answer: option 1
The correct answer is option (1) - Working Capital.
Money needed to fund the normal, day to day operations of a business is known as the Working Capital. It ensures you have enough cash to pay your debts and expenses as they fall due, particularly during start-up period as very few new businesses are profitable as soon as they open their doors. It takes time to reach breakeven point and start making a profit.