Which of the following sets of characteristics places a startup in the strongest position to apply for equity funding?
A) Weak cash flow, high leverage, low-to-moderate growth, unproven management
B) Strong cash flow, low leverage, audited financials, good management, healthy balance sheet
C) Unique business idea, strong cash flow, low-to-moderate growth, broad market
D) Strong cash flow, high leverage, low-to-moderate growth, unproven management
E) Unique business idea, high growth, niche market, proven management

Question

Quizplus · Accepted Answer

A startup with a unique business idea, high growth potential, a niche market, and proven management is in the strongest position to apply for equity funding. High growth potential indicates a large market opportunity, and a unique business idea with a niche market improves the startup's chances of success. Proven management is also an important factor as investors want to see a team with a track record of success.

Which of the Following Sets of Characteristics Places a Startup