Which financial term represents the total expenditure required to start a business?

The term that represents the total expenditure required to start a business is referred to as "Start Up Costs." This encompasses all the initial expenses incurred before the business begins its operations. Start Up Costs can include a variety of expenses such as legal fees for business registration, equipment purchases, lease deposits, renovations of a physical location, marketing expenses to promote the new venture, and any other costs that are required to get the business up and running.

This concept is essential for entrepreneurs to understand, as it helps in budgeting and financial planning for new business ventures. Properly assessing Start Up Costs ensures that sufficient capital is available to cover necessary expenses until the business begins generating revenue. Understanding and accurately calculating these costs can significantly impact the success and sustainability of the business in its initial phases.