The Are Three Common Sources of "Personal" Financing for a Start-Up

question 39

True/False

The are three common sources of "personal" financing for a start-up firm: personal funds, friends and family, and bootstrapping.

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the market.

Common Stock

An equity security that represents ownership in a corporation, giving shareholders the right to vote on corporate matters and receive dividends.

Stock Transfer Agent

A third-party firm hired by a company to track and manage its stockholders and transactions, including transfers and issuance of stock certificates.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a company.