Which of the Following Statements Is True Regarding Business Angels

question 22

Multiple Choice

Which of the following statements is true regarding business angels?

• A)Individual angels are publicly known and hence easy to find.
• B)Individual angels typically invest between $50,000 to $100,000.
• C)Individual angels may invest remotely via syndicate.
• D)The reporting requirements of individual angels are usually formal and are set by an angel fund.

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Definitions:

Diminishing Marginal Productivity

A principle in economics that indicates that as one inputs more of a factor of production while holding other factors constant, the additions to output will eventually decrease.

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, typically characterized by a reduction in per-unit cost with increasing output.

Specialization

The process by which individuals, firms, or countries focus on producing a certain type of goods or services, often to achieve greater efficiencies or quality.