Which of the Following Statements Is NOT True Regarding Angel

question 18

Multiple Choice

Which of the following statements is NOT true regarding angel investors?

• A)For many start-ups, the first round of outside private equity financing is often obtained from them.
• B)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.
• C)They are typically arranged as limited partnerships.
• D)These investors are frequently friends or acquaintances of the entrepreneur.

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Definitions:

Privacy

The right of individuals to keep their personal information out of public view and to control the dissemination of that information.

Family Arrangement

Refers to the structure or make-up of a family unit, including the relationships between members and their roles within the family.

Married Parents

Refers to two individuals who are legally married and are the parents or legal guardians of one or more children.

Biological Parents

The parents to whom a child is born, distinguishing them from adoptive or step-parents.