Which of the following is one of the leading financial practices of fast-growth firms?
A) Refraining from linking an entrepreneur's long-term objectives to a defined exit strategy in a business plan
B) Granting stock ownership to every employee
C) Anticipating only a single round of financing
D) Utilizing financing vehicles that retain an entrepreneur's voting control

Question

Quizplus · Accepted Answer

Utilizing financing vehicles that retain an entrepreneur's voting control is one of the leading financial practices of fast-growth firms. This allows the founder/entrepreneur to maintain control over the direction of the company even as it grows and takes on outside investment. Option A is not a practical approach as having a well-defined exit strategy is important for any business plan. Option B can create a significant financial burden for the company, and option C may not be feasible for all companies as they may require multiple rounds of financing to grow rapidly.

Which of the Following Is One of the Leading Financial