The Decision of How to Raise Additional Funds Needed to Support

question 94

Multiple Choice

The decision of how to raise additional funds needed to support sales growth is based on several factors including

• A)firm's ability to handle additional debt.
• B)conditions in the equity markets.
• C)firm's current capital structure.
• D)existing debt covenants.
• E)All of the above.

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Definitions:

Early-Stage Financing

A stage of financing that involves larger funds provided for companies that have a team in place and a product or service tested or piloted, but have little or no revenue.

Seed-Stage Financing

A stage of financing in which small or modest amounts of capital are provided to entrepreneurs to prove a concept.

Venture Capitalist

An investor who provides capital to startup companies and small businesses with perceived long-term growth potential in exchange for an equity stake.

Market Analysis

The study of the dynamics between potential customers and products to understand the needs and preferences of the target market, competition, and overall viability of a business strategy.