In Startup Firms, Inventory Must Be Purchased, Employees Must Be

Multiple Choice

In startup firms, inventory must be purchased, employees must be trained and paid, and advertising must be paid for before cash is generated from sales. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?

A) Cash flow challenges
B) Marketing costs
C) Personnel costs
D) Capital investments
E) Lengthy product development cycles