To determine the best answer, let's evaluate each of the given options regarding the investment amounts needed to start a new catering business, working off premise.
1. Option A: [tex]$10,000
- While $[/tex]10,000 is a reasonable amount of money to invest in starting a new business, the question specifies "typically invests less than." Therefore, although this may sometimes be the case, we need to consider the possibility of lesser amounts typically being invested.
2. Option B: [tex]$5,000
- This option represents a moderate amount of investment and is often sufficient for starting a small off-premise catering business. It covers necessary expenses without being excessively high. Given this figure, it is a plausible answer.
3. Option C: $[/tex]15,000
- [tex]$15,000 is a significant amount, and while it could be invested in a larger or more established catering operation, it does not fit the criterion of a "typically" lesser investment. It exceeds both $[/tex]10,000 and other lower choices in this context.
4. Option D: [tex]$2,000
- $[/tex]2,000 is a relatively low amount for starting a business, especially a catering business that may involve equipment, transportation, initial stock, and other start-up costs. While possible in very minimalistic scenarios, it’s unlikely to be the typical amount invested.
Analyzing the options:
- A sum of [tex]$10,000 is certainly sufficient but often more than typically required.
- $[/tex]15,000 is too high based on the "typically invests less than" criterion.
- [tex]$2,000 is quite low and may not cover all essential start-up costs.
Thus, considering the typical investment needed to start a new off-premise catering business, the most reasonable and balanced amount to choose would be:
Answer: B. $[/tex]5,000.
