Explanation:

• Option A (Start-up stage): Incorrect. In the start-up stage, companies typically have limited access to debt financing due to negative and unpredictable cash flows. Even if debt is available, the high cost and inflexibility make it unattractive. As a result, debt is usually a negligible part of the capital structure for start-ups.

• Option B (Growth stage): Incorrect. During the growth stage, while debt financing becomes more accessible, companies often prefer to use it conservatively to maintain financial flexibility. Equity remains the primary source of capital, and debt is not yet a dominant component.

• Option C (Mature stage): Correct. In the mature stage, companies generate stable and predictable cash flows, reducing business risk. This allows them to support low-cost debt financing, often on an unsecured basis. Debt becomes more attractive than equity due to lower costs, leading to a higher proportion of debt in the capital structure.