The type of financing used during the rapid-growth life cycle stage includes:
A)second-round financing
B)mezzanine financing
C)liquidity-stage financing
D)all of these choices

Question

Quizplus · Accepted Answer

During the rapid-growth life cycle stage, a business requires a significant amount of funding to support its growth. Second-round financing, mezzanine financing, and liquidity-stage financing are all commonly used types of financing during this stage. Second-round financing is used to provide additional capital to a company that has already received financing in its initial stage. Mezzanine financing provides funds to a company that has already reached a certain level of success but needs additional capital to continue its growth. Liquidity-stage financing is used to provide capital to companies that are approaching an initial public offering or acquisition. Therefore, all of these choices are appropriate for financing during the rapid-growth life cycle stage.

The Type of Financing Used During the Rapid-Growth Life Cycle