A group of small investors who invest money in companies in return for partial ownership is known as a small-business development company.

Question

Quizplus · Accepted Answer

A small-business development company (SBDC) is actually a government-funded organization designed to provide free or low-cost guidance and resources to small businesses. The correct term for a group of small investors who invest money in companies in return for partial ownership is a venture capital firm.

A Group of Small Investors Who Invest Money in Companies