ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An established seasonal partnership is experiencing cash flow problems during the winter months. Which of the following would be a suitable source of finance to overcome this problem?
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Share capital
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Venture capital
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Overdraft
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Crowd funding
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Explanation:
Detailed explanation-1: -One of the main cons of using personal savings to finance a startup is the limited amount of capital available. Most people do not have enough savings to cover the full cost of launching a business, meaning that essential expenses may have to be cut back on or delayed.
Detailed explanation-2: -Venture capital is financing obtained from venture capitalists, investment firms that specialize in financing small, high-growth companies. Venture capitalists receive an ownership interest and a voice in management in return for their money.
There is 1 question to complete.