MANAGEMENT

BUISENESS MANAGEMENT

BUSINESS PLANNING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Private investors who fund start-up businesses, but generally do not participate in managing the business.
A
equity financing
B
debt financing
C
angel investors
D
business loan
Explanation: 

Detailed explanation-1: -Angel investors are wealthy private investors focused on financing small business ventures in exchange for equity.

Detailed explanation-2: -An angel investor is a wealthy person who invests his or her own money in a company-usually a start-up-that is in the early stages of development. Angel investors expect to take ownership positions in the companies they support because their capital is unsecured-they have no claim on the company’s assets.

Detailed explanation-3: -Angel investors are wealthy individuals who provide capital to help entrepreneurs and small businesses succeed. They are known as “angels” because they often invest in risky, unproven business ventures for which other sources of funds-such as bank loans and formal venture capital-are not available.

Detailed explanation-4: -Private investors are people or firms who possess expertise, knowledge, and an interest in investing. More often than not, they put their money into companies that require capital from them to succeed and get financial returns. They focus less on speculation and more on demonstrated growth and opportunity.

There is 1 question to complete.