How Much Return Does a Typical Angel Investor Expect from His

question 4

Multiple Choice

How much return does a typical angel investor expect from his or her investment?

• A)Angel investors have no expectation of return.
• B)double the amount invested within 2 years
• C)10 times the investment in 5 years
• D)3 times the investment within 3 years

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Definitions:

Goodwill

The value attributed to a company's brand name, customer relationships, employee relations, and other intangible assets during an acquisition, over and above the tangible assets' value.

Voting Common Stock

Equity securities that give shareholders the right to vote on corporate matters.

Fair Value

The compensation for parting with an asset or the financial burden of settling a liability in an orderly market operation as of the measurement checkpoint.

Acquisition Method

An accounting technique used to consolidate the financial statements of two companies when one acquires the other.