Author Question: Which of the following is a similarity between venture capital firms and angel investors? A) Both ... (Read 21 times)

FButt · **on:** Jul 14, 2018

Which of the following is a similarity between venture capital firms and angel investors?
A) Both invest in start-up companies with high growth potential in exchange for a share of ownership.
B) Both charge very high interest rates and structure loans to be repaid in months rather than years.
C) Both require an entrepreneur to provide a minimum of twenty-five to thirty percent of the start-up costs.
D) Both only finance large corporations that operate in universal and generic markets.

Question 2

What is the primary disadvantage of both a sole proprietorship and a partnership that a corporation overcomes?
A) No access to capital
B) Taxing complications
C) Unlimited liability
D) Ease of start-up
E) Lack of secrecy