Final answer:
Start-up firms can raise financial capital through early-stage investors, reinvesting profits, borrowing, or selling stock.
Step-by-step explanation:
Firms can raise the financial capital they need to pay for projects in four main ways: from early-stage investors, by reinvesting profits, by borrowing through banks or bonds, and by selling stock. Early-stage investors are individuals or venture capital firms who provide funding to start-up companies in return for equity ownership. Reinvesting profits involves using the company's own earnings to finance future projects.
Borrowing through banks or bonds entails taking on debt that must be repaid with interest. Selling stock involves issuing shares of ownership in the company to public investors.