We compare upfront and staged financing to see when and how one financing policy prevails over the other. In our model, there are two moral hazard problems that interact with each other. First, the entrepreneur may pursue his own private benefit out of the raised fund in the initial period....

This paper considers an agency contracting with multiple tasks. The agent is privately informed on some tasks, but he must gather information on the other. We show that depending on the cost to gather information, task assignment is employed as an instrument to induce information gathering, or...