For Startup Firms, Some Products Are Under Development for Years

question 37

Multiple Choice

For startup firms, some products are under development for years before they generate earnings. The upfront costs often exceed a firm's ability to fund these activities on its own. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?

• A) cash flow challenges
• B) marketing costs
• C) capital investments
• D) personnel costs
• E) lengthy product development cycles

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Definitions:

Sensory Capacities

The maximum ability of the sensory system to detect, process, and respond to stimuli from the environment.

Sensory-Motor Skills

Skills involving the coordination of sensory inputs (like seeing or hearing) with motor actions, critical in childhood development for tasks like grasping and walking.

Physical Growth

The process by which a living organism increases in size and matures in physical characteristics.

Habituation

The psychological process through which an individual becomes accustomed to a stimulus and hence reacts less strongly over time.