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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

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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

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

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UriahMaster · Tutor for 5 years

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Bootstrapping

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## Step 1: <br />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.<br /><br />## Step 2: <br />Analyze the options provided. <br /><br />1. Bootstrapping: This involves the use of the entrepreneur’s personal finances and the company's profits to fund the company. <br /><br />2. Angel investment: This refers to capital provided by high-net-worth individuals or ‘angel investors’ to startups for ownership equity or convertible debt.<br /><br />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.<br /><br />4. Merger acquisition: This is a strategy where a company combines with or purchases another company to strengthen itself.<br /><br />## Step 3: <br />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."
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