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

question 46

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

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Definitions:

Wobblies

A nickname for members of the Industrial Workers of the World (IWW), an international labor union founded in 1905, known for its radical labor activism.

Samuel Gompers

An American labor leader and the first president of the American Federation of Labor, who promoted organized labor and labor rights in the late 19th and early 20th centuries.

Class Collaborator

A person from a particular social or economic class who works with members from another class, often in a political or economic context.

Pension Reform

Changes or adjustments made to pension policies to maintain their sustainability, often involving modifications to eligibility, benefits, or funding mechanisms.