One potential problem with acquiring funds from friends and relatives is that they might feel that they have the right to interfere in the management of the business.

Question

Quizplus · Accepted Answer

Friends and relatives who have provided funds may feel a sense of ownership and entitlement, which could lead to them wanting to get involved in the decision-making process or exerting influence over how the business is run.

One Potential Problem with Acquiring Funds from Friends and Relatives