Sam's new business is failing. In desperation, he asks his most experienced investor, Esteban, for advice. Esteban says, "Sam, I'm glad you asked. As a(n)________ investor, I've seen other businesses struggle, and I believe that I can help your business recover. In fact, I'll probably be willing to make further investments if I can have some say-so in what steps you take to recover."
A)sophisticated
B)nonprofessional
C)affiliate model
D)intermediary model
E)junior

Question

Quizplus · Accepted Answer

The term "sophisticated investor" typically refers to someone who has experience and knowledge in investing, and can provide more than just financial support to a business. Esteban's statement suggests that he falls under this category, as he has seen other struggling businesses and can offer advice on how to recover. Additionally, his willingness to make further investments in exchange for some control over the recovery process indicates that he has a vested interest in the success of the business, which is a common trait of sophisticated investors.

Sam's New Business Is Failing