Nature's Bounty, an organic seed company, is seeking to grow from a small company selling seeds in local markets into a company that sells seeds across several states. The funding for this expansion comes from a wealthy individual who uses his considerable inherited wealth to fund a variety of eco-friendly businesses. Which of the following best describes this individual's relationship with Nature's Bounty?

Question

Quizplus · Accepted Answer

Angel investors are wealthy individuals who provide funding for startups and small businesses. They often invest their own money and provide support and guidance to help the company grow. In this scenario, the wealthy individual is using their own money to fund Nature's Bounty and promote eco-friendly businesses, which fits the description of an angel investor. The other options, such as corporate investors or institutional investors, are typically larger entities that invest on behalf of a group or organization and may have different goals and objectives than an individual angel investor. Venture capitalists may also invest in startups, but they typically look for high-growth potential and may take a more hands-on role in the management of the company.

Nature's Bounty, an Organic Seed Company, Is Seeking to Grow