Author Question: Steven and Emily Campbell are planning to open a casual dining restaurant in downtown Akron, Ohio, ... (Read 227 times)

piesebel · **on:** Jul 6, 2018

Steven and Emily Campbell are planning to open a casual dining restaurant in downtown Akron, Ohio, and need 125,000 to get started. They have 50,000 of their own money, which leaves 75,000.

After getting turned down by a couple of banks, they decided to turn to their relatives and acquaintances for help. Fortunately, they were able to raise the money through a gift from Steven's grandfather, a loan from Emily's parents, and a small investment by Steven's best friend in college, Doug. The money that an entrepreneur raises in this manner is referred to as ________.
A) friends and family
B) bootstrapping
C) networking money
D) compassion money
E) legacy money

Question 2

A firm's working capital is defined as its fixed assets minus its long-term liabilities.

Indicate whether the statement is true or false