Author Question: What is meant by the term bootstrapping? Provide several examples of the ways that entrepreneurs ... (Read 135 times)

schs14

  • Hero Member
  • *****
  • Posts: 569
What is meant by the term bootstrapping? Provide several examples of the ways that entrepreneurs bootstrap to raise money or cut costs?
 
  What will be an ideal response?

Question 2

The What Went Wrong feature in Chapter 14 focuses on the failure of Crumbs Bake Shop, a specialty-restaurant chain that sold gourmet cupcakes. According to the feature, Crumbs failed due to ________.
 
  A) lack of funding to facilitate expansion, high real estate costs, management turnover, poor operating margins
  B) no pivot or change in strategy, lack of international expansion, trademark dispute with a competitor, failure to franchise
  C) increasingly crowded market, consumers started losing interest in cupcakes, high real estate costs, and no pivot or change in strategy
  D) lack of funding to facilitate expansion, management turnover, increasingly crowded market, and high fixed costs
  E) high operating costs, trademark dispute with a competitor, consumers started losing interest in cupcakes, and failure to franchise



uniquea123

  • Sr. Member
  • ****
  • Posts: 311
Answer to Question 1

Bootstrapping is the use of creativity, ingenuity, and any means possible to obtain resources other than borrowing money or raising capital from traditional sources. There are many ways entrepreneurs bootstrap to raise money or cut costs. Some of the more common examples include:
 Buy used instead of new equipment
 Coordinate purchases with other businesses
 Lease equipment rather than buying
 Obtain payments in advance from customers
 Minimize personal expenses
 Buy items cheaply, but prudently, through discount outlets or online auctions such as eBay
 Share office space or employees with other businesses
 Hire interns

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

For a complete list of videos, visit our video library