Entrepreneurial Finance (5th Edition) Edit edition

This problem has been solved:

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Lifestyle business: A business which aspires to sustain and achieve a particular level of Income, which is operated by its founders. Put in other words a business run just to receive a level of income to let one-self enjoy a particular lifestyle.

Entrepreneurial venture: A business which is started with limited resources and planning, where risks and rewards are taken in account as well. The idea of such a business is something innovative and does not exist in market already.

A.

E-P, Inc. was founded by S.S and his father, K, in 1990. The purpose behind such foundation was provision of ecofriendly paper and Janitorial supplies, such as recycled copy paper, organic coffee, and alternative packaging material. S.S and his father chose to locate the business in B, C a community known for its support of environmental initiatives and natural products.

The consumers at that point of time were passive in adoption of such eco-friendly products. The employees were employed at low salaries. Seed funding for operations came from friends and family. K’s garage was being used as warehouse for Eco-products at the inception. Such a history of the company is suggestive of a life-style business.