Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is one of the advantages of bootstrap funding?

It eliminates all financial risk for the business owner.

It requires giving up equity to outside investors.

It guarantees immediate access to large amounts of capital.

It allows entrepreneurs to retain full ownership and control of their business.

Previous problemNext problem

Verified step by step guidance

Understand the concept of bootstrap funding: Bootstrap funding refers to starting and growing a business using personal savings, revenue generated by the business, or other non-traditional funding sources, rather than relying on external investors or loans.

Analyze the advantages of bootstrap funding: One key advantage is that it allows entrepreneurs to retain full ownership and control of their business, as they are not required to give up equity to outside investors.

Evaluate the incorrect options: Bootstrap funding does not eliminate all financial risk for the business owner, as the entrepreneur is still using their own resources and may face financial challenges. It also does not guarantee immediate access to large amounts of capital, as funding is typically limited to what the entrepreneur can personally provide or generate through the business.

Compare the correct option with the incorrect ones: The correct answer highlights the benefit of retaining full ownership and control, which is a significant advantage of bootstrap funding compared to other funding methods like venture capital or loans.

Conclude the reasoning: Based on the analysis, the correct answer is that bootstrap funding allows entrepreneurs to retain full ownership and control of their business, which aligns with the definition and advantages of this funding method.