In terms of mission, aspirations, and risk propensity, what are investors looking for in a team? Select one: a. That its missions and aspirations are closely aligned with those of the entrepreneurial team b. That the entrepreneurs are willing to share in the financial risk of the venture c. That the entrepreneurs are ultimately willing to exit the business d. All of the above

Question

Business

Elena Marks

6 March, 01:30

In terms of mission, aspirations, and risk propensity, what are investors looking for in a team? Select one: a. That its missions and aspirations are closely aligned with those of the entrepreneurial team b. That the entrepreneurs are willing to share in the financial risk of the venture c. That the entrepreneurs are ultimately willing to exit the business d. All of the above

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Answers (1)

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Ernesto Liu · Answer 1

a. That its missions and aspirations are closely aligned with those of the entrepreneurial team

Explanation:

Separation between the investors and the management team of a business brings about business interest risk. The business interest risk is the probability that the investors interest will be different from the business management interest. In order to align their interests with that of the entrepreneurial team of a business, investors normally for missions and inspirations that are closely aligned with those of the entrepreneurial team.

This congruence is important for boosting investors' confidence in the entrepreneurial team, because it shows that the investors and the entrepreneurial team are on the same page.

Option B is obvious in all business. It can't be a deciding factor.

Option C is incorrect for this context.