Which of the Following Statements Regarding Angel Investors Is Most

question 19

Multiple Choice

Which of the following statements regarding angel investors is most accurate?

• 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 small relative to the amount of capital already in place at the firm,they typically receive a small equity share in the business in return for their funds.
• D)These investors are typically not acquaintances or friends of the entrepreneur.
• E)They have little influence on the business decisions of the firm.

---

Definitions:

Profit

The financial gain that is realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Its Shareholders

Refers to the individuals or entities that own shares in a company, thereby holding a part of its ownership.

Corporate Social Responsibility

Refers to businesses' practice of operating in an ethical and sustainable way, considering their environmental, social, and economic effects.