Question

to avoid going into debt or being undercapitalized, an owner should have enough projected revenue to cover expenses ________.
answer
○ for approximately three years
○ for approximately four years
○ for at least the first year
○ for at least five years
○ i dont know yet
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Explanation:

In business (specifically entrepreneurship/financial management), to avoid debt/undercapitalization, a business owner needs projected revenue to cover expenses for at least the first year as initial operations are risky and cash flow can be tight initially. The other timeframes (3, 4, 5 years) are too long or not standard for this basic financial planning principle.

Answer:

for at least the first year