Master Glencoe Entrepreneurship Finance Exam. Enhance your skills with detailed questions and comprehensive explanations. Prepare with confidence for success!

Multiple Choice

Which of the following is NOT typically considered a source of startup capital?

When evaluating sources of startup capital, the focus is on funds secured to launch or bootstrap the business before it is fully generating revenue. Revenue from ongoing operations is money the business earns after it has started, from selling products or services, and while it can support growth later, it isn’t funds raised to start the venture. Bootstrapping with personal savings, bank loans, and grants are typical early-stage sources because they provide upfront capital to get the business going. So, the correct idea is that ongoing revenue isn’t considered startup capital.

When evaluating sources of startup capital, the focus is on funds secured to launch or bootstrap the business before it is fully generating revenue. Revenue from ongoing operations is money the business earns after it has started, from selling products or services, and while it can support growth later, it isn’t funds raised to start the venture. Bootstrapping with personal savings, bank loans, and grants are typical early-stage sources because they provide upfront capital to get the business going. So, the correct idea is that ongoing revenue isn’t considered startup capital.