Question

"What is the ultimate reason for trading equity for financial support? a. it is usually a deal/no deal option b. preparing for the questions asked in pitching and due diligence will ultimately improve the company c. it is more likely that the entrepreneur will build a more valuable company d. there will be more people interested in the company’s success'

Answer 1

Answer:

The correct answer is the option C: It is more likely that the entrepreneur will build a more valuable company.

Explanation:

To begin with, the fact that the companies nowadays trade equity for financial support indicates that there is an extremely important need in the management of the company to obtain more backup in financial terms and that without it, the other companies tend to growth better than the one who has not support from third parties. Therefore that the managers look forward to obtain financial support with the purpose of investing all the money that enters and getting better at what the company does. That is why than when the owners manages to get the support it will prove to other that the company can growth and be more valuable and get more success eventually.