Question
Entrepreneursnip What term describes the type of funding used when an entrepreneur starts a company using profits and personal finances without external help or capital? Bootstrapping C Angel investment Crowdfunding Merger acquisition
Answer
4
(236 Votes)
Uriah
Master · Tutor for 5 years
Answer
Bootstrapping
Explanation
## Step 1: Understand the question. The question is asking for a term that describes a method of funding a startup or a business venture without the assistance of external capital.## Step 2: Analyze the options provided. 1. Bootstrapping: This involves the use of the entrepreneur’s personal finances and the company's profits to fund the company. 2. Angel investment: This refers to capital provided by high-net-worth individuals or ‘angel investors’ to startups for ownership equity or convertible debt.3. Crowdfunding: This is the practice of funding a project or venture by raising small amounts of money from a large number of people, typically via the Internet.4. Merger acquisition: This is a strategy where a company combines with or purchases another company to strengthen itself.## Step 3: Identify the correct answer. The correct answer is the one that describes a situation in which an entrepreneur relies on internal funds, such as personal finances and profit earnings, without seeking external financial support. Considering the definitions, the appropriate term is "Bootstrapping."