Author Question: What is meant by the term bootstrapping? Provide several examples of the ways that entrepreneurs ... (Read 130 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?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

For a complete list of videos, visit our video library