ECONOMICS (CBSE/UGC NET)

ECONOMICS

BUSINESS CYCLES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Select all of the following that are examples of challenges in the seed stage?
A
gaining market acceptance of business idea
B
capability and time constraints
C
entrepreneurial skills
D
financial costs
Explanation: 

Detailed explanation-1: -The common financing sources used in developing economies can be classified into four categories: Family and Friends, Equity Providers, Debt Providers and Institutional Investors.

Detailed explanation-2: -Seed financing is the riskiest form of investing. It involves investing in a company in its earliest stage of development, far before it generates revenues or profits. Due to such reasons, venture capitalists or banks usually avoid seed financing.

Detailed explanation-3: -Seed funding is the first official equity funding stage. It typically represents the first official money that a business venture or enterprise raises. Some companies never extend beyond seed funding into Series A rounds or beyond. You can think of the “seed” funding as part of an analogy for planting a tree.

Detailed explanation-4: -Angel investors. Angel networks and platforms. Micro venture capitalists. Venture capitalists. Corporate venture capital. Accelerators and incubators. Family offices. Government grants and funds. More items •02-Sept-2022

There is 1 question to complete.