Which of the Following Statements Is True of Angel Investors

question 11

Multiple Choice

Which of the following statements is true of angel investors?

• A) They usually fund start-ups and often require the firms to pledge collateral to back the fund.
• B) They typically invest in low-risk opportunities that offer the possibility of marginal rates of return.
• C) They usually fund mature firms that have an established track record.
• D) They typically provide funds to start-ups in exchange for a share of ownership.

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Definitions:

SWOT Analysis

A strategic planning tool that involves evaluating the Strengths, Weaknesses, Opportunities, and Threats related to a business or project.

Market Potential

An estimate of the maximum total sales of a product or service that could be achieved within a specific market segment over a certain time period.

Market Saturation

A situation in which a product or service has become so widespread that the market is considered fully served, limiting further growth.

Actual Market

The existing market where a company's products or services are currently being sold, as opposed to potential new markets.