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You are considering an investment in a new start-up company, Giraffe Inc., an Internet service provider. A review of the company's financial statements reveals negative

You are considering an investment in a new start-up company, Giraffe Inc., an Internet service provider. A review of the company's financial statements reveals negative retained earnings. In addition, it appears as though the company has been running a negative cash flow from operating activities since the company's inception.

Question 1:

How is the company staying in business under these circumstances?

Question 2:

Could this be a good investment?

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