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

Question

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When friends and relatives invest in a business, they may feel entitled to offer their opinions and suggestions on how the business should be run. This can create conflicts if the entrepreneur does not agree with their suggestions or if the suggestions interfere with the overall vision of the business.

One Potential Problem with Acquiring Funds from Friends and Relatives