Steven and Emily Campbell are planning to open a casual dining restaurant in downtown Akron, Ohio, and need $125,000 to get started. They have $50,000 of their own money, which leaves $75,000. After getting turned down by a couple of banks, they decided to turn to their relatives and acquaintances for help. Fortunately, they were able to raise the money through a gift from Steven's grandfather, a loan from Emily's parents, and a small investment by Steven's best friend in college, Doug. The money that an entrepreneur raises in this manner is referred to as ________.
A) friends and family
B) bootstrapping
C) networking money
D) compassion money
E) legacy money

Question

Quizplus · Accepted Answer

The money that the Campbells raised from their relatives and acquaintances is typically referred to as "friends and family" funding, which is a common way for entrepreneurs to get started with their businesses. Bootstrapping typically refers to a situation where an entrepreneur relies on their own resources, such as personal savings, to start and run a business. Networking money, compassion money, and legacy money are not commonly used terms in the context of startup funding.

Steven and Emily Campbell Are Planning to Open a Casual