Author Question: What is meant by the term bootstrapping? Provide several examples of the ways that entrepreneurs ... (Read 121 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 Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

For a complete list of videos, visit our video library