Entrepreneurs Might Use an Initial Investment to Reach a Milestone,or

question 36

Multiple Choice

Entrepreneurs might use an initial investment to reach a milestone,or a set target that they need to achieve for investors to consider additional financing. Which of the following is an example of a milestone?

• A) The development of a prototype for the product.
• B) Obtaining customer feedback through a survey or focus group.
• C) Organizing the relevant venture team.
• D) Hiring employees.
• E) Any of the above.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given period and must be paid out before common dividends can be distributed.

Par Common Stock

The value designated to shares of common stock in the articles of incorporation, known as the nominal or face value.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company remains unchanged.

Market Value

The present cost at which a service or asset is available for purchasing or selling on the open market.