Because of the high risk and relatively small amount of cash required to start his business,Graham is turned down by traditional creditors.However,a wealthy individual believing in Graham and the business agrees to finance the start-up.What is this wealthy individual called?
A) venture capitalist
B) business angel
C) private bank
D) credit specialist

Question

Quizplus · Accepted Answer

A wealthy individual who invests money in a start-up is commonly referred to as a business angel or angel investor. They provide financing when traditional creditors like banks or credit specialists decline to lend money due to the high risk involved in the business. They typically provide capital in exchange for ownership equity or other forms of compensation.

Because of the High Risk and Relatively Small Amount of Cash