Problemas
Which two are benefits of using Angel investors to help start a business?(Choose two) 0000 Angels have no equity in the business. Angels often accept a lower return on investment compared to other sources of equity capital. Angel investors typically do not expect to be paid until the business begins making money. Angels do not share in the profits of the business.
Roztwór
Rafael
élite · Tutor durante 8 años
4.6
(305 Votos)
Respuesta
The two benefits of using Angel investors to help start a business are: "Angels often accept a lower return on investment compared to other sources of equity capital" and "Angel investors typically do not expect to be paid until the business begins making money".
Explicación
## Step 1The problem is asking us to identify two benefits of using Angel investors to help start a business. Angel investors are individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity. They are often experienced entrepreneurs themselves and can provide valuable advice and guidance to the business.## Step 2The first option, "Angels have no equity in the business", is not a benefit. In fact, it's the opposite of what Angel investors typically do. They usually take an equity stake in the business in exchange for their investment.## Step 3The second option, "Angels often accept a lower return on investment compared to other sources of equity capital", is a benefit. Angel investors are often willing to accept a lower return on their investment compared to other sources of equity capital. This can be beneficial for the business as it can reduce the amount of equity that needs to be given up.## Step 4The third option, "Angel investors typically do not expect to be paid until the business begins making money", is also a benefit. Angel investors are often patient and understand that it can take time for a business to become profitable. They are willing to wait for the business to start making money before they expect to be paid.## Step 5The fourth option, "Angels do not share in the profits of the business", is not a benefit. In fact, it's the opposite of what Angel investors typically do. They usually share in the profits of the business as part of their equity stake.