Who is a person or organization that invests money in hopes of gaining profit from a fast-growing company?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Prepare for the GCSE Business Exam with targeted flashcards and multiple choice questions. Get hints and explanations for each question. Excel in your exam!

The correct answer is Venture Capitalist. A venture capitalist is a specific type of investor who provides capital to startups or small businesses with high growth potential in exchange for equity, or partial ownership, of the company. They typically invest in early-stage companies and often take an active role in helping to guide the business's growth, providing not only financial resources but also strategic advice and industry connections.

While the term "investor" broadly encompasses anyone who puts money into financial ventures with the hope of earning a profit, venture capitalists are distinguished by their focus on investing in newer, fast-growing companies that may not yet be profitable but show significant potential for future success.

Angel investors are similar in that they also invest in startups and emerging businesses, often using their personal funds. However, they tend to invest at an earlier stage than venture capitalists and may not typically seek to manage or guide the business as actively.

A portfolio manager oversees investment portfolios on behalf of clients or organizations, making decisions about which assets to buy or sell to maximize returns, but they are not specifically focused on investing in fast-growing companies alone.

Thus, venture capitalists specifically target high-growth potential companies and manage the risks associated with investing in them, making this the most accurate choice for the

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy