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What do entrepreneurs invest in when starting a business with hope that they will get rewards or benefits?

A) Effort and time
B) Personal relationships
C) Retirement savings
D) Real estate properties

User Jcfollower
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Final answer:

Entrepreneurs invest A. effort, time, and often their personal finances in a startup, demonstrating their commitment and belief in the venture's prospects, which in turn can attract angel investors and venture capitalists who also offer advice.

Step-by-step explanation:

Entrepreneurs invest various resources when starting a business with the hope of obtaining rewards or benefits. The most direct investments are effort and time, where they actively work towards developing and managing their business. In addition to these, entrepreneurs often invest their personal finances, demonstrating their belief in the business's prospects.

When founders invest their own money, they show a strong commitment to their venture, making it more likely to attract further investment such as from angel investors or venture capitalists. These external investors usually seek to know the management team and their business plan personally to offer not just funding but also valuable advice. The initial investment, no matter the size, is an essential part of the entrepreneurial process and signifies the willingness to engage in the risk that comes with starting a new enterprise.

User Elina
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