Explain What Problems an Entrepreneur Might Avoid by Using Bootstrap

question 12

Essay

Explain what problems an entrepreneur might avoid by using bootstrap financing instead of outside capital.
A.Outside capital takes between 3-6 months to raise,if it can be raised at all.This process distracts the entrepreneur from other important activities.
B.Outside capital often decreases a firm's drive for sales and profits.
C.The availability of capital increases the impulse to spend.It can cause a company to hire more staff before they are needed and to move into more costly facilities.
D.Outside capital can decrease the company's flexibility.This can hamper the direction,drive,and creativity of the entrepreneur.
E.Outside capital may cause disruption and problems in the venturE.Capital is not provided without the expectation of a return,sometimes before the business should be giving onE.This emphasis on short-term performance can be at the expense of the long-term success of the company.

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Definitions:

One-Way ANOVA

A statistical test that compares the means of three or more independent groups to determine if there is a significant difference between them.

Null Hypothesis

The default hypothesis that there is no significant difference or relationship between specified populations, any observed effect is due to sampling or experimental error.

Interaction

In the context of statistics and experimental design, interaction refers to a situation where the effect of one independent variable on the dependent variable varies according to the level of another independent variable.

Factorial ANOVA

A statistical test used to examine the effects of two or more independent variables on a dependent variable simultaneously.