Suzie is a chemist who has been experimenting with fragrances in her home laboratory and feels that she now has three viable perfumes that could be successfully marketed.She knows a venture capitalist who has offered to finance her business to the point where she would be ready to begin the manufacturing and marketing stage.Which type of financing is Suzie being offered?
A)syndicate
B)introduction
C)second-stage
D)mezzanine-level
E)seed money

Question

Quizplus · Accepted Answer

Seed money is the initial capital used to start a business. In Suzie's case, the venture capitalist is offering to finance her business from the very beginning, which aligns with the concept of seed money. This type of financing is aimed at helping businesses develop their product to the point where they can begin manufacturing and marketing, exactly as described in Suzie's situation.

Suzie Is a Chemist Who Has Been Experimenting with Fragrances