Which of the Following Statements Is Not True Regarding Angel

question 45

Multiple Choice

Which of the following statements is not true regarding Angel Investors?

• A) They are typically arranged as limited partnerships.
• B) For many start-ups, the first round of outside private equity financing is often obtained from them.
• C) Because their capital investment is often large relative to the amount of capital already in place at the firm, they typically receive a sizeable equity share in the business in return for their funds.
• D) These investors are frequently friends or acquaintances of the entrepreneur.

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Definitions:

Actual Costs

The real costs incurred in the production of goods or the providing of services, as opposed to estimated costs.

Budgeted Amounts

Projected financial figures or allocations for revenues, costs, expenses, etc., established during the budgeting process.

Master Budget

A comprehensive financial plan made up of several individual budgets that outline a company's financial and operational goals.

Static Budget

A static budget is a fixed budget created for a specific period of time, which does not change or adjust with changes in business activity levels.