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true or false a new business during its survival stage can easily get funding by selling...

true or false a new business during its survival stage can easily get funding by selling their corporate bonds and shares of common stock

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Answer #1

False

It is not easy to get funding for the business during its survival period because bond and shareholders demand more return due to high risk involved.

Moreover, funding mostly happens from private equity or venture capitalists and they also keep their management to involve in the day to day operations of the business.

As I mentioned, bond ratings will be on a lower side because of the risk of the business and shareholders also shows no interest because of probable non recovery in to the profits where they also not get much returns

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