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CH 12- Bootstrapping for Resources questions and answers
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CH 12- Bootstrapping for Resources questions and answers
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CH 12- Bootstrapping forResources questions and
answers
When someone states, "I don't have money to start
a business," what fact might one consider?
a. Most businesses start without any formal
investment.
b. This is a valid reason for not starting a business.
c. Formal investment will be needed to make a
successful company.
d. People who have no money cannot start a
business. - answer a. most businesses start
without any formal investment
What percentage of startup businesses start
without any formal investment?
a. 98%
b. 75%
c. 50%
d. 24% - answer a. 98%
What is the name given to the process of building a
business with very little funding?
,a. seed startup
b. bootstrapping
c. zero funding
d. skeleton funding - answer b. bootstrapping
Jose starts a small restaurant. On weekends, he
works with his cousin to construct the tables,
chairs, and counters that will go into the
restaurant. What is the name given to the result of
these efforts?
a. labor equity
b. owner labor
c. sweat equity
d. family ownership - answer c. sweat equity
SuLin is setting up a small construction shop and
uses his personal credit card to purchase the
company's basic equipment. This process is
referred to as which of the following:
a. venture capital
b. credit
c. external funding
d. bootstrapping - answer d. bootstrapping
What is the advantage of angel investor funding?
, a. You may gain advice and guidance.
b. You will not have to pay for the investment.
c. You will not be expected to use your own money
toward your business.
d. The funding is easy to attain. - answer a. you
may gain advice and guidance
What are the "3 Fs"?
a. The three major sources of formal funding.
b. A slang term meaning angel investors.
c. Family, friends, and fools.
d. Free financial funding. - answer c. family,
friends, and fools
Which of the following is an advantage of
bootstrapping?
a. You can expand your business faster.
b. You will avoid risk.
c. Outside investors are more likely to fund you if
you have bootstrapped.
d. All of these. - answer c. outside investors are
more likely to fund you if you have bootstrapped
A company launching 100% through boostrapping
would use this source of funding:
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