BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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can be publicly traded
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do not require a long-term commitment of funds
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provide mezzanine financing to early-stage companies.
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Detailed explanation-1: -Entering the mezzanine stage-it’s often also called the bridge stage or pre-public stage-means you are a full-fledged, viable business. Many of the investors who have helped you reach this level of success will now likely choose to sell their shares and earn a significant return on their investment.
Detailed explanation-2: -This form of investing is provided to set up the initial operation and basic production. Early stage capital works by supporting the development of the product or service. The funds raised can also be used to market and commercially manufacture the product. The team may use the money for supporting sales as well.
Detailed explanation-3: -What Is Mezzanine Financing? Mezzanine financing is a hybrid of debt and equity financing that gives the lender the right to convert the debt to an equity interest in the company in case of default, generally, after venture capital companies and other senior lenders are paid.
Detailed explanation-4: -Pre-Seed Funding and Seed funding typically starts with family, friends, and other angel investors who like to work with startup companies. For early-stage funding, venture capital groups, entrepreneurs, and other organizations focus on up-and-coming businesses with products or services they think will sell.