Which of the Following Statements Is NOT Correct Regarding Business

question 40

Multiple Choice

Which of the following statements is NOT correct regarding business angels?

• A) Business angels invest in more startups on a yearly basis than venture capitalists.
• B) The number of angel investors has decreased dramatically over the past decade.
• C) Business angels usually take a seat on the board of directors of the firms in which they invest.
• D) Business angels are valuable because of their willingness to make relatively small investments.
• E) Business angels are difficult to find.

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Definitions:

Net Capital Outflow

Refers to the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners. A positive net capital outflow means a country is investing more abroad than others are investing in it.

Open-Economy Macroeconomic Model

A framework for analyzing economies that engage in international trade, highlighting how these economies interact with the rest of the world economically.

Import Quotas

Restrictions set by a government on the quantity or value of certain goods that can be imported into a country, often to protect domestic industries.

Exchange Rate

The price at which one currency can be exchanged for another in the foreign exchange market.