Management Notes

Reference Notes for Management

Seed capital assistance ______________.

Looking for the answer to the question below related to Entrepreneurship Development and Management ?

Seed capital assistance ______________.


A. a long-term assistance.
B. initial assistance
C. a help for the purchase of seeds.
D. a short-term assistance.


The Correct Answer Is:

  • B. initial assistance

Answer Explanation:

A. A long-term assistance:

Seed capital is generally not intended for long-term financial support. It is more about providing the necessary funding to begin a project or business, with the expectation that the venture will eventually become self-sustaining or attract further investment.

Long-term assistance would suggest ongoing financial support, which is not the primary purpose of seed capital.

C. A help for the purchase of seeds:

While the term “seed capital” might seem related to agriculture and buying actual seeds, in the context of finance and entrepreneurship, it does not refer to buying literal seeds.

Instead, it represents the initial investment required to start a new business or project, which can involve various expenses beyond just buying seeds. So, this option is too narrow in its interpretation.

D. A short-term assistance:

While seed capital is typically used at the outset of a project or business, it is not necessarily short-term in nature.

The duration of support can vary depending on the specific venture and its development timeline.

Seed capital can be used to cover expenses during the initial stages of a project, but the ultimate goal is often to secure additional funding or become financially self-sufficient, which may take longer than just a short-term assistance period.

In summary, “initial assistance” best captures the essence of seed capital assistance as it represents the financial support provided at the beginning of a project or business to help it get started.

The other options do not fully align with the typical characteristics and purpose of seed capital assistance.

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