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Which of the following statements is true regarding an angel investor?

A. An angel investor is more likely to be a single individual.
B. An angel investor is only interested in funding the growth of a business.
C. An angel investor usually charges management fees and interest on funding loans.
D. An angel investor does not expect a share of ownership for investing funds.


Sagot :

Final answer:

Angel investors are individual backers who provide funding and guidance to early-stage companies in exchange for ownership. They do not charge management fees or interest on loans.


Explanation:

An angel investor is more likely to be a single individual who invests their own money into small new companies at an early development stage in exchange for owning a portion of the firm.

Angel investors are not only interested in funding the growth of a business but also provide guidance and advice to the managers to help the business succeed.

Contrary to the statement given, an angel investor does expect a share of ownership in the company in exchange for investing funds, rather than charging management fees and interest on loans.


Learn more about Angel Investors here:

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