True or False (2 points) 1)Entrepreneurs tend to rely on a single source of funding

Finance Dec 24, 2020

True or False (2 points)

1)Entrepreneurs tend to rely on a single source of funding. (_____)

2)No dilution of profits or gains is an advantage of Self-Financing. (_____)

3)Bootstrapping reduces the risk associated with debt financing. (_____)

4)When working with a business angel network, an entrepreneur must submit an informal business plan. (____)

Expert Solution

A. False. They tend to approach different VCs, debt providers etc in order to get help with their business as well apart from the funding requirements.

B. True. If the business is self financed, it will not result in any gains or losses division. They will be obtained by the owner.

C. True. Debt financing has the risk of bankruptcy which isn't there in bootstrapping.

D. True. Business plan is a way for investors to understand the business of the entrepreneur.

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