Advertisements
Advertisements
Question
State the role of an angel investor in an entrepreneurial pursuit.
Solution
- Angel investors bear extremely high risk and are usually subject to dilution from future investment rounds.
- Apart from investing funds, most angels provide proactive advice, guidance, industry connections and mentoring start-ups in its early days.
- Their objective is to create great companies by providing value creation, and simultaneously helping investors realize a high return on investments.
- They have a sharp inclination to keep abreast of current developments in a particular business arena, mentoring entrepreneurs by making use of their vast experience.
APPEARS IN
RELATED QUESTIONS
Answer each of these questions in about fifteen words:
Identify the reward IPO investors seek as an appreciation of their investment.
Answer each of these questions in about fifteen words
Why right issue method of issuing securities is considered to be inexpensive?
Answer each of these questions in about fifteen words:
What is meant by stock options or offering shares to the employees?
Answer each of these questions in about fifteen words:
Name the method which enables employees to become shareholders and share the profits of the company.
Answer each of these questions in about two hundred and fifty words:
While there are benefits to going public, at the same time additional obligations and reporting requirements on the companies and its directors means disadvantages too. What are they? Explain.
Answer each of these questions in about fifteen words:
Humorously, they were once given the acronym FFF for Angel Investors”. What does FFF stand for?
Answer each of these questions in about fifteen words:
What do you understand by angel investors?
Answer each of these questions in about two hundred and fifty words:
Explain the characteristics of angle investors.
Assertion (A): The Angel Investors were given the acronym FFF – i.e. FRIENDS, FAMILY, AND FOOLS.
Reason (R): Angel investors are high net-worth individuals who have the knowledge, expertise, and funds that help start-ups without due diligence.
Read the passage given below and answer the questions that follow.
ABC Ltd. is a hardware manufacturing company listed on National Stock Exchange. The company operates only in Delhi- NCR. The management plans to expand their area of operation across the country. They require funds for their expansion plans.
Briefly explain each source of finance given below.
State whether these sources can be used by ABC Ltd. or not for raising funds. Give a reason to support your answer.
- Angel Investors
- Factoring
- Global Depository Receipts
- Loans from Financial Institutions
