What is the most common way that entrepreneurs finance the start-up of a new business?
A) Self-financing from savings or credit cards
B) Loans from friends, family, or business associates
C) Bank loans
D) Lines of credit
E) Venture capital

Question

Quizplus · Accepted Answer

Self-financing from savings or credit cards is the most common way that entrepreneurs finance the start-up of a new business, as it allows them to maintain control over their business and not owe money to any outside parties. However, it can also be risky if the business does not succeed and the entrepreneur ends up with significant debt. Loans from friends, family, or business associates can also be a common option, but may strain personal relationships if the business does not succeed. Bank loans, lines of credit, and venture capital are less common options for start-up financing.

What Is the Most Common Way That Entrepreneurs Finance the Start-Up