Which of the Following Statements Is NOT True Regarding Angel

question 95

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 sizable equity share in the business in return for their funds.
• D) These investors are frequently friends or acquaintances of the entrepreneur.

---

Definitions:

Factory Operating

Activities and processes involved in the daily running and management of a manufacturing facility.

Maximum Rate

The highest possible rate or level of something, which might refer to interest rates, production speeds, or capacity.

Joint Cost

Costs incurred in the process of producing two or more products simultaneously from the same input or process.

Split-Off Point

The split-off point is the stage in a manufacturing process where joint products can be recognized as separate products, each with its own identity.