Asked by Jonathan Madava on Feb 18, 2024
Verified
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) sweat equity
C) external funding
D) bootstrapping
Bootstrapping
The process of building or starting a business with no outside investment, funding, or support.
- Understanding the concept of using personal credit cards for business expenses.
- Recognizing the term used to describe the process of using personal credit cards for business expenses.
- Differentiating between various sources of funding for a business.
Verified Answer
JT
Joshua TrahanFeb 18, 2024
Final Answer :
D
Explanation :
Bootstrapping refers to using personal savings or personal credit to fund a business, which is what SuLin is doing. Venture capital refers to outside investors providing funding, sweat equity refers to contributing time and effort instead of money, and external funding refers to getting funding from sources outside of the business owner's personal resources.
Learning Objectives
- Understanding the concept of using personal credit cards for business expenses.
- Recognizing the term used to describe the process of using personal credit cards for business expenses.
- Differentiating between various sources of funding for a business.