Final answer:
The correct answer is option b. Executives help small business owners through SCORE by using their business experience to provide mentorship. Very small companies tend to seek private investment over IPOs, and venture capitalists often have more information on a firm's profitability. Angel investors are a key funding source for startups.
Step-by-step explanation:
Executives use their own business background to help small business owners through SCORE, which stands for the Service Corps of Retired Executives. SCORE is a nonprofit association that provides education and mentorship to new and existing small businesses, leveraging the expertise and experience of volunteer business executives who have retired or are still active in their fields. These mentors offer valuable advice on a variety of business topics, including how to start a company, develop business plans, and navigate financial challenges.
Very small companies often raise money from private investors such as angel investors, rather than an IPO, because it's a more suitable option for their scale and funding needs. Early-stage companies might prefer an IPO to raise capital as it may offer more funds and public visibility. Venture capitalists often have better information on the profitability of a small firm, as they are directly involved in business development.
Regarding early-stage corporate finance, angel investors play a crucial role as the original source of money can come from the business owner's account or through loans secured by personal assets. Angel investors, also, provide funds during the early development stage and receive a portion of the firm in exchange.