The three reasons startups need funding are:
A) cash flow challenges, capital investments, and lengthy product development cycles
B) business research, cash flow challenges, and costs associated with building a brand
C) bonuses for members of the new venture team, attorney fees, and lengthy product development cycles
D) attorney fees, capital investments, and marketing research
E) bonuses for members of the new venture team, marketing research, and personnel costs

Question

Quizplus · Accepted Answer

Startups often need funding to address cash flow challenges, especially during the early stages of the business when cash flow may be unreliable. They also need funding for capital investments, such as acquiring equipment or hiring employees, and for lengthy product development cycles, which require a significant investment of time and resources before generating revenue. The other options (B, C, D, E) may reflect common expenses for startups, but they are not the primary reasons why startups need funding.

The Three Reasons Startups Need Funding Are