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:

Just-In-Time

A management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce inventory costs.

Insurable Interest

A stake or a legal right in the preservation of an item, person, or property that allows an individual or entity to obtain insurance coverage against loss or damage.

Supply Stoppages

Interruptions or halts in the provision or delivery of goods and services, often due to disputes, logistics issues, or external factors.

Salvage

The act of rescuing a ship, its crew, and cargo from peril at sea, often entailing the recovery of parts or property from damage or destruction.