When a Business Enters a Phase of Rapid Growth,one of the Challenges

question 75

True/False

When a business enters a phase of rapid growth,one of the challenges it faces is that very few sources of money are available to support its growth.

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Definitions:

New Issue

The term for securities that are offered to the public for the first time through an initial public offering (IPO) or a bond issuance.

Prospectus

A formal legal document that is required by and filed with securities regulatory bodies that provides details about an investment offering to the public.

Venture Capital

Financing provided by investors to startup companies and small businesses with long-term growth potential in exchange for an equity stake.

Venture Capitalist

A Venture Capitalist is an investor who provides capital to startups or small companies looking to expand but do not have access to equities markets.