Sam is planning to start a pool cleaning business from his home, but has realized that he does not have enough money in savings or credit to pay for the set-up costs and first year of operation. Which of the following would not be a good way for Sam to get the money to start his business?
Answer
A
Talk to a bank about a business loan for the missing funds.
B
Talk to an investor about investing their money into his business.
C
Purchase a $3,000 compact car instead of a truck for his business.
D
Find a business partner to share the initial expenses.
Explanation
Sam needs a way to obtain the money for his start-up costs and first year of operation. A bank loan, an investor, or a business partner could provide or share the needed funds. Buying a compact car instead of a truck changes what he purchases, but it does not raise the money he lacks, so that is not a good way to get the money.
AI-written and checked against the verified answer.