Why Do Most People Launching a Start-Up Company Acquire Their

question 52

Multiple Choice

Why do most people launching a start-up company acquire their funds through the venture capital industry rather than through angel investors?

• A) Most entrepreneurs are not willing to relinquish the control of their business demanded by angel investors.
• B) Most entrepreneurs do not want the fees associated with investment by an angel investor.
• C) Most entrepreneurs do not need the expertise brought to a young firm by an angel investor.
• D) Most entrepreneurs do not have any relationships with individuals with substantial capital to invest.

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Definitions:

Political Disagreements

Differences in opinions or positions held by individuals or groups regarding political policies, strategies, or philosophies.

False Consensus Effect

The tendency to overestimate the extent to which others share our beliefs, values, and behaviors.

Speed Limits

Legal restrictions on the maximum speed at which vehicles may travel on particular roadways, intended to enhance safety and reduce accidents.

Projection

A defense mechanism where an individual attributes their own unacceptable feelings or thoughts to someone else.