Problem:
If a start-up firm seeks to sell a product, before the business can open the firm needs to (1) purchase an inventory, (2) train employees and pay them, and (3) cover the appropriate costs associated with rent, etc. Notice how these costs typically occur before sales from which profits will be earned. This entrepreneur in this particular situation is therefore motivated to seek financing because of the A. Cash flow challenges B. Marketing costs C. Personnel costs D. Lengthy product development cycles E. None of the above