ACCA Financial Management (F9) Certification Practice Exam

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Prepare for the ACCA Financial Management (F9) Certification Exam with engaging quizzes and interactive content. Dive deep into financial management concepts and boost your exam confidence with questions that come with detailed explanations.

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What is a 'Business Angel' in the context of financing?

A government official offering loans
A wealthy individual seeking investment opportunities
A corporate investor in startups
A non-profit organization

The correct answer is: A wealthy individual seeking investment opportunities

A 'Business Angel' refers to a wealthy individual who provides capital to early-stage startups or entrepreneurs in exchange for equity or convertible debt. This type of investor typically seeks investment opportunities to help promising businesses grow and succeed while also aiming to earn a return on their investment. Business Angels not only offer financial support but often bring valuable expertise, networking opportunities, and mentorship to the businesses they invest in. They play a crucial role in the startup ecosystem, particularly for young companies that may struggle to secure financing from traditional sources like banks or venture capitalists. The other choices describe different concepts unrelated to the specific role of a Business Angel. Government officials offering loans pertain to public funding mechanisms, corporate investors specifically denote institutional investment entities that may have different objectives and structures, while non-profit organizations typically focus on charitable purposes rather than investing in for-profit ventures.