1. Farah is an engineer with an idea for a flexible solar energy material that would have a wide range of military and civilian applications. She estimates that she will need approximately $300,000 to develop a prototype. Friends and family could provide about $75,000. She contacts Natalie, an angel investor, for this purpose. In this case, which of the following is likely to be true?
A. Farah is unlikely to expect more than just financial support from Natalie.
B. Farah is likely to receive a report from Natalie that is more thorough than those by formal venture capitalists.
C. Natalie is likely to be a wealthy individual with expertise in the field.
D. Natalie is unlikely to be a private investor.
2. The approach of seeking to control rather than own resources needed for a venture results in which of the following?
A. Lower capital requirements
B. Lower flexibility
C. Higher sunk costs
D. Higher risks