Which of the Following Is True About the Differences Between

question 63

Multiple Choice

Which of the following is true about the differences between angel investors and venture capitalists?

• A)Venture capitalists are wealthy individuals who provide capital to new companies.
• B)Angel investors raise money and then use this money to make investments in new firms.
• C)Venture capitalists make more investments than angel investors.
• D)Angel investors tend not to focus on particular industries.
• E)Venture capitalists typically provide the initial financing to start-up ventures.

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum quantity of two goods that can be produced with available resources and technology.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.

Capital Goods

Items that are used in the production of other goods and services, rather than being bought by consumers.

Opportunity Costs

The cost of choosing one alternative over others, representing the benefits an individual, investor, or business misses out on when choosing one option over another.