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:

Precision

The quality of being exact, accurate, and careful about details.

Self-Disclosure

The act of revealing personal information about oneself to others, which can play a crucial role in developing intimacy and trust in relationships.

Personal Information

Data about an individual that identifies them or can be used to identify them, such as their name, address, and preferences.

Jealousy

An aversive response that occurs because of a partner’s real, imagined, or likely involvement with a third person.