List at least five advantages of bootstrapping.
What will be an ideal response?
Advantages:
A. No equity give-up.
B. Faster than waiting for banks or investors to take financing decisions.
C. Shows commitment to future investors – entrepreneurs put their “money where their mouth is.”
D. Creates positive pressure on entrepreneurs to succeed as it is their own money (or house) that is on the line.
E. Makes companies leaner by purchasing only what they strictly need.
F. Forces entrepreneurs to push products to market early on.
G. Total control and flexibility. Decision can be made freely and quickly.
You might also like to view...
A(n) ____________________ is the process used by an accountant to ensure consistency between the balance shown on the bank statement for a particular account and the balance shown on the accounting records
Fill in the blank(s) with correct word
Rebel leaders within the AFL who wanted to organize unskilled workers into industrial unions contributed to the emergence of the:
A. Great Depression. B. laissez faire philosophy. C. conspiracy doctrine. D. Congress of Industrial Organization.
Which stage in Schein’s career life cycle is known for individuals developing self-assurance and trust in decisions and job skills?
a. Full membership in early career b. Full membership, midcareer c. Midcareer crisis d. Late career
Koppenhaver Products, Inc., has a Relay Division that manufactures and sells a number of products, including a standard relay that could be used by another division in the company, the Electronics Division, in one of its products. Data concerning that relay appear below: Capacity in units 86,000Selling price to outside customers$63Variable cost per unit$41Fixed cost per unit (based on capacity)$10?The Electronics Division is currently purchasing 15,000 of these relays per year from an overseas supplier at a cost of $57 per relay.?Assume that the Valve Division is selling all of the valves it can produce to outside customers. Also assume that $10 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs. What should be the
minimum acceptable transfer price for the valves from the standpoint of the Valve Division? A. $41 per unit B. $63 per unit C. $57 per unit D. $53 per unit