contestada

Beverly’s new fusion restaurant has been in business for 6 months. It is doing great! Each weekend she has more reservation requests than the restaurant can handle. Beverly decides she would like to raise some capital to help the restaurant grow to keep up with the demand. What would be an appropriate choice for Beverly to consider in order to raise that capital?

Respuesta :

Answer:

D. Venture Capital

Explanation:

Option A is wrong. As the restaurant has been operating for only six months, it is not a public limited company to offer a preferred stock.

Option B is incorrect. Since the restaurant company is new and expanding steadily, issuing common stock will cost them unnecessary expenses.

Option C is incorrect as taking bonds will see them provide another extra expense, interest cost.

Option D is correct. Venture capitalists seek to help those startups which are relevantly new and expanding steadily but nicely. Therefore, It would be an appropriate choice for Beverly to consider to raise that capital.