Advantage of Bootstrapping
CMAT 2026 · Innovation & Entrepreneurship · Easy · Innovation and Entrepreneurship
The strategic advantage of bootstrapping in entrepreneurial finance is
- A.
It increase in dilution of control.
- B.
It signals financial discipline and validates business potential before external funding.
- C.
It specifies the accounting standards for financial reporting.
- D.
It facilitates negotiation.
Answer
B
Explanation
Bootstrapping allows entrepreneurs to grow organically without diluting ownership, demonstrating financial discipline and business viability before raising external capital.
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