BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To provide small business advice
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To provide capital for business development in exchange for a stake in the Business ownership
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To set up a franchise business
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To assist an entrepreneur to open a lifestyle business.
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Detailed explanation-1: -Investor angels, or business angels, are people who invest their money in the initial phase of startups, in exchange for a participation in capital. They also usually carry out the role of a mentor and offer their consent and experience to entrepreneurs.
Detailed explanation-2: -A business angel is a private individual, often with a high net-worth, and usually with business experience, who directly invests part of their assets in new and growing private businesses. Business angels can invest individually or as part of a syndicate where one angel typically takes the lead role.
Detailed explanation-3: -The correct answer is Equity. Angel investors are also called informal investors, angel funders, private investors, seed investors or business angels. These are individuals who inject capital for startups in exchange for ownership equity or convertible debt.
Detailed explanation-4: -Business angels are individuals who make equity investments in businesses with growth potential, businesses in the early stages of development, or established businesses looking for expansion capital.
Detailed explanation-5: -Examples of Business Angels are high net worth individuals, foundations, research centers, nonprofit societies, corporations acting as donors, etc. They usually invest in a startup, early-stage, or developing firm.