Author Question: What is meant by the term bootstrapping? Provide several examples of the ways that entrepreneurs ... (Read 122 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?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

For a complete list of videos, visit our video library