Question

which of the following statements about angel investors is true?
a. they fund businesses that are already established, rather than in their earlier stages.
b. they are willing to put up their own money to fund businesses in hopes of eventual profit.
c. they have limited financial means. they are typically middle class, and the investment is a significant risk for them.
d. they usually do not have industry experience in the areas in which they are investing.
e. they seek to control the businesses in which they are invested. they intend to both invest in and manage the business to a great extent.

Explanation:

Angel investors are wealthy individuals who invest their own money in startups or early - stage businesses in exchange for equity. Their goal is to make a profit when the business succeeds.

• Option A: Angel investors typically invest in early - stage businesses, not already - established ones.
• Option C: Angel investors are usually high - net - worth individuals, not middle - class with limited financial means.
• Option D: Many angel investors have industry experience in the areas they invest in.
• Option E: Angel investors do not usually seek to control or manage the business to a great extent; they mainly provide capital.

Answer:

B. They are willing to put up their own money to fund businesses in hopes of eventual profit.