QUESTION IMAGE
Question
match the funding option to its description
investor
crowdfunding
small business administration (sba) grants
bootstrapping
small business administration (sba) loans
an owner uses their own savings to fund the business
loans must be paid back with interest. the maturity terms differ depending on the type of loan
free money given to small business owners to help with the launching and development of their business. they do not have to be paid back
helps fund a business or a specific project, usually for some kind of stake in the company
Each funding option is matched to its core defining characteristic:
- Bootstrapping relies on the owner's personal funds.
- SBA loans are debt instruments requiring repayment with interest.
- SBA grants are non-repayable funds for small businesses.
- Investors provide capital in exchange for a stake in the business.
- Crowdfunding (note: this is the remaining unmatched option, typically involving raising small amounts from a large group of people; the provided descriptions align the other four clearly, and this is the leftover pairing for the structure)
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- Bootstrapping: An owner uses their own savings to fund the business
- Small Business Administration (SBA) loans: Loans must be paid back with interest. The maturity terms differ depending on the type of loan
- Small Business Administration (SBA) grants: Free money given to small business owners to help with the launching and development of their business. They do not have to be paid back
- Investor: Helps fund a business or a specific project, usually for some kind of stake in the company
- Crowdfunding: (Residual matching for the remaining blank, as it is the only unpaired funding option)