Why Do Most People Launching a Start-Up Company Acquire Their

question 47

Multiple Choice

Why do most people launching a start-up company acquire their funds through the venture capital industry rather than through angel investors?

• A) Most entrepreneurs are not willing to relinquish the control of their business demanded by angel investors.
• B) Most entrepreneurs do not want the fees associated with investment by an angel investor.
• C) Most entrepreneurs do not have any relationships with individuals with substantial capital to invest.
• D) Most entrepreneurs do not need the expertise brought to a young firm by an angel investor.

Understand the various research methods used in psychology, such as surveys, naturalistic observations, case studies, and experiments.

Recognize the advantages and limitations of using surveys in psychological research.

Describe what naturalistic observation entails and recognize when it is an appropriate method to use.

Identify and explain the concept of demand characteristics and how they can be minimized.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how many times a company collects its average accounts receivable in a period, indicating the efficiency of extending credit and collecting debts.

Average Accounts Receivable

The average amount of money owed to a company by its customers for goods or services provided on credit over a specified period.

Inventory Turnover Ratio

A measure of how quickly a company sells and replaces its stock of goods within a given period.

Cost of Goods Sold

The total cost of materials and labor directly involved in producing goods or services sold during a period.