Question

Some businesses may be able to self-finance, or fund their growth through utilization of their own net income and cash resources. This is sometimes called: a. The elevator pitch b. Bootstrapping c. Leveraging d. Capitalizing

Answer 1

Answer:

B) Bootstrapping

Explanation:

Usually established businesses self finance themselves by setting a retained earnings amount that can be used for financing new or existing projects instead of being distributed to its owners (or shareholders) and without having to borrow money.

Bootstrapping refers to setting a company and making it grow without using loaned money. This means that the business either grows with money that its owners put into it, or by setting aside retained earnings.