Entrepreneurs are most likely to give up more equity in their businesses in the ________ phase of their companies than in any other.
A)startup
B)product development
C)product testing
D)product shipping

Question

Quizplus · Accepted Answer

During the startup phase, entrepreneurs need to attract investors to fund their businesses. They may not have a track record or revenue yet, making their businesses riskier investments. Therefore, investors may demand a higher percentage of equity in exchange for their funding. As the company grows and becomes more successful, entrepreneurs may have more leverage to negotiate better terms with investors, resulting in less equity given up.

Entrepreneurs Are Most Likely to Give Up More Equity in Their