Sondra Is a Business Angel Who Is Looking for a Start-Up

question 145

Multiple Choice

Sondra is a business angel who is looking for a start-up company in which to invest.Which company would she most likely invest in based on current research?

• A)A company that currently has fewer than 20 employees and has plans to grow
• B)A business out of her home state to diversify her risk
• C)A business in an industry in which she has no experience
• D)A company formed by a group of experts in the industry

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.

Stock

Shares in the ownership of a company, representing a claim on part of the corporation's assets and earnings.

Share

A unit of ownership in a company or financial asset that gives the holder a claim on part of the company's assets and earnings.

Transfer Agent

An entity appointed by a corporation to maintain records of investors, account balances, and transactions; to issue and cancel shares; and to handle share transfers.