Wood Crafts has expended almost all its start-up funds and is seeking venture capital to begin manufacturing.Which type of financing is it seeking?

Question

Quizplus · Accepted Answer

Wood Crafts is seeking first-round financing as it has already expended its start-up funds and is looking for new capital to begin manufacturing. Mezzanine financing is usually done in later stages of a company's development, bridge financing is typically used for short-term needs, seed money financing is for initial start-up funds, and second-round financing is for companies that have already received first-round funding and are seeking additional capital. Therefore, the best choice is B, first-round financing.

Wood Crafts Has Expended Almost All Its Start-Up Funds and Is