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Question

General Knowledge Question on Business and Economy

We have all heard of a venture capitalist in the IT industry. Who or what is an angel investor?

A

Someone who puts moneyin the beginning of the project and usually does not expect returns on the investment.

B

Someone who puts moneyin an internet company that is running into losses.

C

Someone who givesonly technical consultancy for the project.

D

None of the above

Answer

Someone who puts moneyin the beginning of the project and usually does not expect returns on the investment.

Explanation

Solution

Angel investors generally provide capital to startup's or early-stage businesses, exchange for convertible debt or ownership equity in the business. They generally take higher risks as compared to traditional investors.

The correct option is (A): Someone who puts money in the beginning of the project and usually does not expect returns on the investment.