A Disadvantage of Using Friends and Relatives as Investors Is

question 17

Multiple Choice

A disadvantage of using friends and relatives as investors is:

• A)they tend to demand more stock options.
• B)familial seniority often conflicts with the "chain of command."
• C)they require more leniency with benefits and pay.
• D)unrealistic expectations or misunderstood risks destroy friendships or family relationships.

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Definitions:

Vacation

A period of time devoted to rest, leisure, and enjoyment, typically away from work or school.

Defensive Reaction

A protective response or behavior triggered by perceived criticism or threat, often resulting in justification or excuses.

Counterattack

An aggressive response or action taken against an initial attack or challenge.

Control Anger

The practice of recognizing signs of anger and managing them in a healthy way to avoid negative outcomes.