For a start-up company, which risk(s) is/are typically high?

I. competitive risk
II. product market risk
III. capital investment risk
IV. ESG risk

Correct Answer: I and II

Capital investment risk tends to be a bigger concern for mature companies that have enough cash but lack natural reinvestment opportunities. ESG risk: in start-up companies, management tends to be major shareholders and there is less mis-alignment between management and shareholder interests than that in a mature company.