Which one of the following is least likely to explain why entrepreneurs contribute their personal funds to start-up projects? Their contribution:

Question

Quizplus · Accepted Answer

Entrepreneurs contributing their personal funds to start-up projects are unlikely to repay debt held by the venture capitalist. This is because debt repayment is the responsibility of the firm and its cash flow, and not that of the entrepreneur's personal funds. The other options (A, C, and D) are more likely to explain why entrepreneurs contribute their personal funds. A) Personal funding acts as a signal to venture capitalists that the entrepreneur is committed to the project and has confidence in its potential success. C) Retaining a portion of the firm's equity allows the entrepreneur to retain control and potentially benefit from future profits. D) Contributing personal funds provides an incentive to expend effort and work hard to make the project successful.

Which One of the Following Is Least Likely to Explain