Question

If a business owner is in need of financing, he/she might consider a(n) ________________, who would invest in the business for a partial ownership stake

Answer 1

Venture capitalists

Answer 2

Angel Investor.

Step-by-step explanation:

Depending on the size and necessities of the business and its owner, he normally has 2 options for financing:

Venture Capitalist and Angel Investor.

Venture Capitalist:

Is a capital investor who provides finance for needy businesses in return for equity stakes which is a percentage or number stock /shares of a business owned by owner (s) of the business. He normally risks investing in potential growth businesses and expects to be massively compensated with the business returns.

Angel Investor:

Also known as informal investor, are most times high capital worthy investors who invest in small start-up businesses. They could have a close relationship with the business owner being friends or relatives and are sought out in the moments of urgency and difficult periods in exchange for convertible debt or ownership equity.