Question

Carlos has a small fashion company. He has been in business for a little over a year and the company looks like it is going to do very well. Carlos is in talks with Bloomingdale's and Nordstrom, and already has been doing some work with Calvin Klein. Carlos needs to raise some capital to help the company grow to keep up with the demand. What might be a good source of capital for Carlos to look into?

Answer 1

Answer: A.Venture capital firm

Explanation:

Carlos's company is a new business. One with growth potential and less than a year under it's belt and yet it has done some work with Calvin Klein. He now needs capital to continue the momentum and there is a specialized finance vehicle for people like him, Venture Capitalism.

Venture Capitalism refers to Venture Capital firms investing funds in growing or starting businesses. They have a high risk appetite which enables them to go into business with new firms. The key criteria is that there MUST be high Growth Potential.

Their strategy is simple, they invest in a new company in exchange of a certain amount of ownership of the business and then 4-6 years later exit the company when they are bought out.

Carlos's business is growing and has huge potential, if he doesn't mind sharing some of his ownership, Venture Capitalism is the best way to go.

Answer 2

Answer:

As the specified statements, it's perfect that the Carlos is a rising organization that's performing smart and desires a bit little of financially support to stay up with the ultimatum.

Venture capital funding are the simplest possibility for the corporate Carlos. This funding is for the businesses which are at their initial stage of rising or which have the potential for higher development

Carlos as we have a tendency to see, it's development potential and it's rising too.

An preliminary stock giving is just done by the stock exchange listed corporations and within the given statement it's obscurity only if Carlos may be a listed corporation in big apple stock exchange or the other