_______ Is Generally at a Pre-Revenue Stage, and Seed Capital

question 15

Multiple Choice

_______ is generally at a pre-revenue stage, and seed capital is needed to conduct research and development, cover initial costs, and attract the attention of venture capitalists.

• A)Commercial bank financing
• B)Seed financing
• C)Savings
• D)Friends' money
• E)Angel fund

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Definitions:

Company's Cost

The total expenses incurred by a company in the production of goods or services, including materials, labor, and overhead.

Discounted Cash Flow

An analysis method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

Initial Investment

The amount of money used to start a project, venture, or purchase an investment, before any returns or profits are considered.

Project Profitability Index

The ratio of the net present value of a project’s cash flows to the investment required.