Which of the Following Best Describes an Angel Investor

question 58

Multiple Choice

Which of the following best describes an angel investor?

• A) Families and friends of an entrepreneur are not angel investors.
• B) Angel investors raise money and then use this money to make investments in new firms.
• C) Angel investors make fewer investments than venture capitalists.
• D) Angel investors focus on a small number of industries.
• E) Angel investors provide the initial financing to start-up ventures.

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Definitions:

Indicator Variable

A binary variable that takes the value of 1 if a specific condition is true and 0 if false, used in statistical modeling.

Certain Condition

A specific requirement or state of being that must be met or is assumed to be true within a particular context.

Coefficient

A constant figure or numerical value which is set before a variable and multiplies it in an equation of algebra.

Multiple Regression Model

A statistical method used to explain how a dependent variable is influenced by two or more independent variables.