Lesson 8.1: Sources of Funding (Video)

What is the main advantage of using personal financing for your business?

• No need to repay the funds

• Full control over business decisions

• Access to professional advice

• Unlimited funding capacity

Which of the following is a disadvantage of obtaining grants?

• They guarantee funding for all applicants

• They provide repayable funds

• They offer limited control over business decisions

• They have a highly competitive application process

What is a key benefit of crowdfunding?

• Guaranteed funding

• Market validation and customer engagement

• Immediate large-scale funding

• Minimal marketing efforts

What is a common pressure faced by businesses funded by venture capitalists?

• Requirement to provide scholarships

• Pressure to exit the business quickly

• Obligation to repay funds immediately

• High interest rates

What is a major drawback of small business loans?

• Debt and interest payments

• Equity dilution

• Loss of business autonomy

• Limited funding options