Problem
Answer these three questions about early-stage corporate finance:
a. Why do very small companies tend to raise money from private investors instead of through an IPO?
b. Why do small, young companies often prefer an IPO to borrowing from a bank or issuing bonds?
c. Who has better information about whether a small firm is likely to earn profits, a venture capitalist or a potential bondholder, and why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.