Bootstrapping vs
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Questions and Answers

Which of the following is NOT a common way to obtain funding to start a business?

  • Bank loans
  • Bootstrapping (correct)
  • Angel investors
  • Venture Capitalists

    • What does the term 'bootstrapping' mean in the context of starting a business?

  • Starting a business with a large amount of funding
  • Starting a business with the help of financial experts
  • Starting a business by obtaining bank loans
  • Starting a business with no formal investment (correct)

    • What are some advantages of bootstrapping as a method of raising money for a startup?

  • Receiving larger chunks of money
  • Building more permanent relationships
  • More autonomy over financial decisions (correct)
  • Advice and guidance from financial experts

    • Which of the following is NOT a common bootstrapping strategy mentioned in the text?

    <p>Seeking formal investors</p> Signup and view all the answers

    According to the text, what is one advantage of crowdfunding?

    <p>Saves money on marketing</p> Signup and view all the answers

    Which of the following is NOT one of the four contexts for crowdfunding mentioned in the text?

    <p>Equity Model</p> Signup and view all the answers

    According to the text, what is one key point about bootstrapping?

    <p>It allows for autonomy</p> Signup and view all the answers

    Which one of the following is NOT mentioned as a way to obtain money to start a business?

    <p>Crowdfunding</p> Signup and view all the answers

    What does the term 'bootstrapping' mean in the context of starting a business?

    <p>Starting a business with very little funding or capital</p> Signup and view all the answers

    According to the text, what is one advantage of bootstrapping?

    <p>More autonomy over financial decisions</p> Signup and view all the answers

    What is the expression often used to describe bootstrapping?

    <p>Pull yourself up by your bootstraps</p> Signup and view all the answers

    According to research reports mentioned in the text, what percentage of startup businesses begin with no formal investment?

    <p>98%</p> Signup and view all the answers

    What is one common source of funding mentioned in the text for entrepreneurs who are bootstrapping?

    <p>Crowdfunding</p> Signup and view all the answers

    What is one advantage of external financing mentioned in the text?

    <p>Advice and guidance from financial experts</p> Signup and view all the answers

    According to the text, what is one reason why entrepreneurs often turn to the 3Fs (friends, family, and fools) for funding?

    <p>To build more permanent relationships</p> Signup and view all the answers

    What is one disadvantage of bootstrapping mentioned in the text?

    <p>Lack of legitimacy</p> Signup and view all the answers

    According to the text, what percentage of companies begin with less than $5,000?

    <p>33%</p> Signup and view all the answers

    Which of the following is NOT a common bootstrapping strategy mentioned in the text?

    <p>Seeking investment from formal investors</p> Signup and view all the answers

    According to the text, what is one advantage of crowdfunding?

    <p>Build relationships with customers</p> Signup and view all the answers

    What does the term 'bootstrapping' mean in the context of starting a business?

    <p>Using resources creatively and being mindful of cashflow</p> Signup and view all the answers

    What are some advantages of bootstrapping as a method of raising money for a startup?

    <p>All of the above</p> Signup and view all the answers

    Which of the following is NOT one of the four contexts for crowdfunding mentioned in the text?

    <p>Lending Model</p> Signup and view all the answers

    According to the text, what is one key point about bootstrapping?

    <p>It requires a strong level of commitment</p> Signup and view all the answers

    What does the term 'crowdfunding' mean in the context of raising capital for a new venture?

    <p>Raising capital from a large audience through the internet</p> Signup and view all the answers

    According to the text, what is one advantage of crowdfunding?

    <p>Build relationships with customers</p> Signup and view all the answers

    According to the text, what are some common bootstrapping strategies?

    <p>All of the above</p> Signup and view all the answers

    What are some advantages of bootstrapping as a method of raising money for a startup?

    <p>All of the above</p> Signup and view all the answers

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