Which of the Following Statements Is NOT True Regarding Angel

question 40

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:

Cognitive Tendency

Refers to habitual patterns or biases in thinking that can influence judgment and decision-making.

Typical Prototype

An ideal or standard example of a particular category that embodies the most common and salient features of that category.

Expectancy Model

A theory that proposes an individual's motivation is determined by their expected outcome and the valuation of that outcome.

Name Calling

A form of verbal abuse or slander involving the use of derogatory or demeaning terms towards someone or something.