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.

---

Definitions:

Anorexia Nervosa

A condition involving an intense phobia of putting on weight, accompanied by a steadfast refusal to sustain a weight that is within a healthy range.

Genes

Segments of DNA located on chromosomes that contain the necessary instructions for the development and functioning of an organism.

Cohort Effect

Effect that occurs when people born in one historical period are at different risk for a disorder than are people born in another historical period.

Psychological Variable

An attribute, trait, or condition of an individual that can be measured or observed in psychology.