A Highly Possible Source of Funding for a Start-Up and Early

question 46

Multiple Choice

A highly possible source of funding for a start-up and early business is:

• A)venture capital and private placement.
• B)personal savings and retained earnings.
• C)personal savings and partners.
• D)IPO and Regulation A.

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Definitions:

Unexpected Return

The difference between the actual return of an investment and the expected return, usually arising from unexpected factors or events.

Expected Return

The anticipated return on an investment, accounting for the probabilities of different outcomes, including gains and losses.

Total Return

The overall financial benefit (or loss) of an investment over a specified period, including both capital gains and dividends.

Beta

A scale for calculating the instability, or regular risk, of a security or combined investments relative to the market in its entirety.