Question

Which two are benefits of using Angel investors to help start a business?

1) Increased funding opportunities
2) Access to expertise and mentorship
3) Lower interest rates on loans
4) Reduced risk and liability

Answer 1

Angel investors provide increased funding opportunities and access to expertise and mentorship for start-up businesses.

Step-by-step explanation:

Angel investors offer several benefits to start a business:

1. Increased funding opportunities: Angel investors provide additional funds that can help a business meet its financial needs and accelerate growth.
2. Access to expertise and mentorship: Angel investors often have valuable industry knowledge and experience that they can share with entrepreneurs, offering guidance and support.
3. Lower interest rates on loans: Angel investors typically provide funding through equity investments, so there are no interest rates on loans.
4. Reduced risk and liability: Angel investors take on some of the risk associated with the business, which can help reduce the financial burden on the entrepreneur.