There Are Three Common Sources of "Personal" Financing for a Startup

question 43

True/False

There are three common sources of "personal" financing for a startup firm: personal funds, friends and family, and bootstrapping.

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Definitions:

Cash Inflows

Money or value entering a company, often from operations, financing, or investing activities, contributing to the company's cash position.

Credit Policy

The guidelines a company follows to decide the amount and terms of credit to extend to customers.

Sales

The activities involved in selling goods or services in return for money or other compensation.

Raw Materials Inventory

Items and components that are stored and eventually used in the production process to create finished goods.