Stuart wanted to set up a small steel manufacturing plant. In order to raise funds, he approached his affluent uncle, Tom. Tom agreed to finance the plant with his own money in exchange for an ownership with interest. It can be said that Tom is a(n) _____.

Question

Quizplus · Accepted Answer

An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. Tom fits this description as he is using his own money to finance the plant in exchange for ownership with interest.

Stuart Wanted to Set Up a Small Steel Manufacturing Plant