For Many Start-Ups,the First Round of Outside Private Equity Financing

question 24

Multiple Choice

For many start-ups,the first round of outside private equity financing is often obtained from ________ which may also bring expertise to the firm that the entrepreneur lacks.

• A) venture capital firms
• B) angel investors
• C) institutional investors
• D) corporate investors

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Definitions:

Direct Expense

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Electricity

Form of energy resulting from the existence of charged particles, used for power and lighting.

Stove

A heating appliance used for cooking and heating, operating with various fuel sources like gas, electricity, or wood.

Depreciation

The systematic allocation of a tangible asset's cost over its useful life, reflecting wear and use over time.