Question

First-round financing occurs primarily during which of the following life cycle stages? Select one:

a. a development stage
b. startup stage
c. survival stage
d. rapid-growth stage
e revolving stage

Answer 1

First-round financing occurs primarily during the startup stage of a company's life cycle. Startups raise money from private investors to fund their operations and growth.

Step-by-step explanation:

The first-round financing occurs primarily during the startup stage of a company's life cycle.

Startups are typically in the early stages of development, where they have an idea or prototype but few customers and no or limited profits. However, they need financial capital to support their growth and operations. During the startup stage, companies often raise money from private investors, such as angel investors or venture capitalists, who are willing to invest in the company's potential.

This initial round of financing helps startups to fund their operations, develop their product or service, and establish a customer base. It provides them with the necessary resources to grow and transition to the next stage of the life cycle.