CFA Practice Question

There are 139 practice questions for this study session.

CFA Practice Question

______ financing is one of the formative stages of financing in venture capital.

I. Angel
II. Seed-stage
III. Early-stage
A. I and II
B. I and III
C. I, II and III
Explanation: There are three formative stages of financing:

1. Angel financing. This is capital (typically less than $50,000) that is provided at the "idea" stage, which goes for product development and market research.
2. Seed-stage financing. This capital is used in product development and initial marketing for firms in business under one year and has not sold their product commercially.
3. Early-stage financing. This is capital provided to initiate commercial manufacturing and sales.

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