Right from the very beginning i.e. conceiving an idea; finance is not required for which of the following?
Answer & explanation
Correct answer: option 3
The correct answer is Purchase of Personal House.
Finance is not required to purchase a personal house from the very beginning i.e. conceiving an idea. A house is a personal asset, and it is not related to business. A business needs finance to promote or establish the business, develop products, and acquire fixed assets.
The other options are all related to business:
- Promote or establish the business: A business needs finance to promote its products or services, and to establish itself in the market.
- Develop product: A business needs finance to develop new products or services, and to improve existing ones.
- Acquire fixed assets: A business needs finance to acquire fixed assets, such as land, buildings, machinery, and equipment.