Author Question: What is meant by the term bootstrapping? Provide several examples of the ways that entrepreneurs ... (Read 134 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?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

For a complete list of videos, visit our video library