Eric has decided to invest R10 000 into his neighbour's new company.The money will be used in the early stages of development.Eric is considered a:
A)venture capitalist.
B)business angel.
C)business contributor.
D)loan specialist.

Question

Quizplus · Accepted Answer

Eric is considered a business angel as he is investing money in the early stages of development of his neighbour's company. Business angels are individuals who provide financial backing to startups or early-stage businesses in exchange for equity. They usually invest their own money and provide support in terms of advice and networks. Venture capitalists, on the other hand, typically invest larger amounts of money in more mature businesses and are usually part of a larger investment firm. Loan specialists deal with providing loans, while business contributors is not a common term in the context of investment.

Eric Has Decided to Invest R10 000 into His Neighbour's