______ Consist(s)of Larger Amounts of Funds Provided for Companies That

question 46

Multiple Choice

______ consist(s) of larger amounts of funds provided for companies that have a team in place and a product or service tested or piloted,but as yet show little or no revenue.

• A)Direct cross-subsidies
• B)Seed-stage financing
• C)Startup financing
• D)Early-stage financing

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture due to various financial factors.

ROE

Return on Equity; a financial ratio indicating the profitability of a company by comparing net income to shareholders' equity.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability excluding interest and income tax expenses.

Total Leverage

The combined effect of using both operating leverage and financial leverage on a company's earnings before interest and taxes (EBIT).