A Wealthy Private Individual Who Invests in Return for Equity

question 49

Multiple Choice

A wealthy private individual who invests in return for equity in a new venture is called a(n) __________.

• A) equity investor
• B) angel investor
• C) new venture manager
• D) banker

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Definitions:

Bondholder

An investor or owner of bonds issued by a corporation or government entity, entitled to receive interest payments and the return of principal.

Debt-service Requirements

This term refers to the amount of money needed to cover the repayment of interest and principal on a debt for a specific period.

Expected Future Cash Flows

The estimated amount of money that is anticipated to be generated from an investment, project, or asset over a period of time in the future.

Financial Statement Item

Any line item or component that appears in financial statements, such as balance sheet, income statement, or cash flow statement, representing a company's financial position or performance.