In order for an angel investor or venture capitalist to exchange capital for ownership in a business that is a sole proprietorship, which of these must happen?
A)The business must be re-formed as a partnership.
B)The owner must give up some control.
C)The owner must co sign on all loans.
D)Both the business must be re-formed as a partnership and the owner must give up some control.

Question

Quizplus · Accepted Answer

When an angel investor or venture capitalist exchanges capital for ownership in a business that is a sole proprietorship, the business must be re-formed as a partnership and the owner must give up some control.

In Order for an Angel Investor or Venture Capitalist to Exchange