ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Business Angels are?
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Business people who donate money and expertise to start up businesses
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Business people who invest in businesses with the aim of getting a return on their investment
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Business people who invest their money, time and expertise in small local businesses with the aim of getting a return on their investment.
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None of the above
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Explanation:
Detailed explanation-1: -The amount of equity that angels receive in return for their investment varies widely. It’s typically between around 10% and 25% but may be as much as 40% or more. Since angels invest in return for a stake in the business, you won’t need to make loan repayments to a bank or other financial institution.
Detailed explanation-2: -What do angel investors want in return? Angel investors typically want ownership in the company they invest in. An angel investor usually provides capital in exchange for equity (stock in the company) or convertible debt, which is a loan that can be converted to equity at a later date.
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