You are considering an investment in a new start-up company, Giraffe Inc., an Internet service provider. A
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Question:
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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