For Startup Firms, Some Products Are Under Development for Years

question 62

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