Assertion : Second-round financing refers to the capital required by an entrepreneur for conducting research at pre commercialization stage.
Reasoning : During second round financing, the entrepreneur needs assistance from the Venture Capitalist for expansion, modernization, diversification so that the economies of scale and stability could be attained.
Answer & explanation
Correct answer: option 4
Seed capital finance, refers to the capital required by an entrepreneur for conducting research at pre commercialization stage. Hence, Assertion is incorrect.