Business angels provide
A) asset-based loans.
B) factoring.
C) informal venture capital.
D) trade credit.

Question

Quizplus · Accepted Answer

Business angels provide informal venture capital, which involves investing in early-stage or high-growth companies in exchange for equity ownership. They typically offer more than just funding, but may also provide guidance, mentorship, and industry connections. Asset-based loans (A) involve lending money based on collateral such as inventory, equipment, or real estate. Factoring (B) involves selling accounts receivable at a discount to a third-party financial company. Trade credit (D) allows a company to buy goods or services on credit, with payment due at a later date.

Business Angels Provide