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Resource Mobilization — Entrepreneurship STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipResource Mobilization3 Marks
Question
What is seed capital? Give example.
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Answer

  1. Capital needed to set up a new business or enterprise. It can be obtained from owners or his/ her relatives or from outside sources.
  2. It is that money used for the initial investment in a project or startup company provided to an entrepreneur to prove the feasibility of the project and quality of start up capital.
  3. To avail this sources of finance he may concern and contact various agencies, financial institutions.
Example: Narayan Murthy started Infosys in 1981, he had no capital and his wife Sudha Murthy gave him ₹ 10,000 which can be considered as seed capital.

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