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Multiple Choice
An angel investor with specific industry knowledge and connections is known as which of the following?
A
A venture capitalist
B
A passive investor
C
A strategic angel
D
A crowdfunding backer
Verified step by step guidance
1
Understand the role of different types of investors in microeconomics and business finance contexts.
Recall that a venture capitalist typically invests large sums in startups but may not have specific industry knowledge or connections.
Recognize that a passive investor provides capital without active involvement or industry-specific expertise.
Identify that a crowdfunding backer gathers small investments from many individuals, usually without specialized knowledge or connections.
Conclude that an angel investor with specific industry knowledge and connections is called a strategic angel, as they provide both capital and valuable expertise.