Bootstrap financing includes all of the following EXCEPT ________
A) using one's own funds
B) borrowing from family
C) borrowing from friends
D) borrowing from a bank
E) trading services and products with vendors and clients
D) borrowing from a bank
Explanation: When entrepreneurs start a business with little capital, they are said to be using bootstrap financing. This includes financing using your own money, borrowing funds from family and friends, and possibly trading services and products with vendors or clients. These informal funding options may be enough to start the business. Friends and family are generally go-to financing options for new business owners because, unlike banks, family and friends often do not require high rates of return on the money they have invested or demand the business turn a quick profit.
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