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Multiple Choice
Which of the following types of financing is most typical for a business in its mature stage?
A
Venture capital funding
B
Issuing bonds to raise capital
C
Seed funding from angel investors
D
Crowdfunding through online platforms
Verified step by step guidance
1
Understand the stages of a business lifecycle: Businesses typically go through stages such as startup, growth, maturity, and decline. Each stage has distinct financing needs and options.
Recognize the characteristics of the mature stage: In the mature stage, businesses have established operations, stable cash flows, and a proven track record. They often seek financing for expansion, acquisitions, or operational improvements.
Evaluate the financing options provided: Venture capital funding and seed funding are typically associated with early-stage businesses, while crowdfunding is more common for startups or niche projects.
Identify the most suitable financing option for a mature business: Issuing bonds is a common method for mature businesses to raise capital. Bonds allow businesses to borrow money from investors and repay it with interest over time.
Conclude that issuing bonds aligns with the financial stability and credibility of a mature business, making it the most typical financing option for this stage.