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:

Freudian Stage

Stages of psychosexual development outlined by Sigmund Freud, theorized to influence personality based on the focus of libidinal energies at different ages.

Fixation Evidence

Data or observations supporting the psychological concept that individuals can become stuck at an early developmental stage, affecting future behavior and attitudes.

Regression

A defense mechanism in psychoanalysis where an individual adopts more childish manners of dealing with stress and conflict.

Internally Motivated

Being driven by internal desires and values rather than external rewards or pressures; having personal motivation for actions or beliefs.