Which of the following is the most likely method of financing for a high technology entrepreneurial firm?

Question

Quizplus · Accepted Answer

High technology entrepreneurial firms typically have high growth potential but may not generate profits initially. This makes them suitable candidates for equity financing, where investors provide funds in exchange for a share of ownership in the company. Mortgage bonds, debentures, and junk bonds are types of debt financing, which may not be suitable for firms that are not yet profitable or have uncertain cash flows.

Which of the Following Is the Most Likely Method of Financing