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Suhani used to sell vegetables in a cart with her sister. They were able to earn profit of ` 300 per day. Even though the amount was sufficient for their living, but they wanted to earn more. In order to expand the business and arrange funds, Suhani contacted an angel investor in her locality. Suhnai contacted Angel Investor because as per the view of Suhani, Angel investors provide funds to small businesses. State whether her view point is true or false. 
  • a)
    True
  • b)
    False
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Suhani used to sell vegetables in a cart with her sister. They were ab...
An angel investor (also known as a private investor, seed investor or angel funder) is a high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Often, angel investors are found among an entrepreneur's family and friends.
For example, let's say that John Doe has an idea for a way to power widgets with small, flexible solar panels rather than electricity. He needs to build a prototype and form a business in order to capitalize on the idea and begin selling the product. John finds Ralph Jones, an angel investor.
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Suhani used to sell vegetables in a cart with her sister. They were ab...
Answer:

Introduction:
Suhani, who used to sell vegetables in a cart with her sister, wanted to expand her business and arrange funds for the same. In her pursuit of finding funds, she contacted an angel investor in her locality. Let us analyze whether Suhani's viewpoint about angel investors providing funds to small businesses is true or false.

Explanation:
Understanding Angel Investors:
1. Angel investors are individuals or groups of individuals who invest their own money into early-stage businesses in exchange for ownership equity or convertible debt.
2. They typically provide financial support to startups or small businesses that have high growth potential, but may not have access to traditional funding sources like banks or venture capital firms.
3. Angel investors often invest in businesses that are in their early stages or have innovative ideas, and they usually take an active role in mentoring and advising the entrepreneurs they invest in.

Role of Angel Investors:
1. Funding: One of the primary reasons entrepreneurs approach angel investors is to secure funding for their business ventures. Angel investors can provide the necessary capital to help businesses grow and expand.
2. Business Expertise: Angel investors often have experience and expertise in specific industries or sectors. They can offer valuable guidance, advice, and mentorship to the entrepreneurs they invest in.
3. Networking Opportunities: Angel investors have extensive networks and connections in various industries. They can introduce entrepreneurs to potential customers, partners, or other investors, thereby expanding their business opportunities.
4. Due Diligence: Angel investors conduct thorough due diligence before investing in a business. They analyze the business model, market potential, financial projections, and management team to assess the viability and potential return on investment.
5. Risk Mitigation: By investing in multiple businesses, angel investors diversify their investment portfolio, reducing the risks associated with any individual investment.

Conclusion:
Based on the information presented, Suhani's viewpoint that angel investors provide funds to small businesses is true. Angel investors play a crucial role in providing financial support, expertise, and networking opportunities to startups and small businesses. Their investments can help these businesses grow, expand, and achieve their goals. Therefore, Suhani's decision to contact an angel investor to arrange funds for expanding her business is a logical step.
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Suhani used to sell vegetables in a cart with her sister. They were able to earn profit of ` 300 per day. Even though the amount was sufficient for their living, but they wanted to earn more. In order to expand the business and arrange funds, Suhani contacted an angel investor in her locality. Suhnai contacted Angel Investor because as per the view of Suhani, Angel investors provide funds to small businesses. State whether her view point is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer?
Question Description
Suhani used to sell vegetables in a cart with her sister. They were able to earn profit of ` 300 per day. Even though the amount was sufficient for their living, but they wanted to earn more. In order to expand the business and arrange funds, Suhani contacted an angel investor in her locality. Suhnai contacted Angel Investor because as per the view of Suhani, Angel investors provide funds to small businesses. State whether her view point is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Suhani used to sell vegetables in a cart with her sister. They were able to earn profit of ` 300 per day. Even though the amount was sufficient for their living, but they wanted to earn more. In order to expand the business and arrange funds, Suhani contacted an angel investor in her locality. Suhnai contacted Angel Investor because as per the view of Suhani, Angel investors provide funds to small businesses. State whether her view point is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Suhani used to sell vegetables in a cart with her sister. They were able to earn profit of ` 300 per day. Even though the amount was sufficient for their living, but they wanted to earn more. In order to expand the business and arrange funds, Suhani contacted an angel investor in her locality. Suhnai contacted Angel Investor because as per the view of Suhani, Angel investors provide funds to small businesses. State whether her view point is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer?.
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