An investor who contributes _____ equity often receives a share of ownership for their efforts rather than capital.

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The term "sweat equity" refers to the non-financial investment that individuals contribute to a business, typically in the form of time, effort, and skills, rather than monetary capital. This is particularly common in startup environments, where founders or key team members work long hours to build and grow the business, investing their labor and expertise. In return for this significant commitment, they often receive a portion of ownership in the company, allowing them to share in the potential future profits and growth.

In contrast, bootstrapped equity usually relates to self-funding a business through personal savings or revenue generated from sales, which doesn't directly equate to ownership in exchange for effort. Lingering and additional do not pertain to ownership shares in the context of effort or labor contributed to a business. Thus, "sweat equity" is the correct term that encapsulates the idea of earning ownership through hard work and dedication.

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