Some young companies grow with the aid of equity investment provided by wealthy individuals known as angel investors.Group of answer choicesTrueFalse

Analyzing the Statement

1. Identifying the Main Idea: The statement claims that young companies often grow with the support of equity investment from angel investors.

2. Understanding Key Terms:

   • Young Companies: Often referred to as startups or early-stage businesses.
   • Equity Investment: This is a form of investment where investors provide capital to companies in exchange for ownership stakes.
   • Angel Investors: Wealthy individuals who provide capital to startups in exchange for equity, typically looking to support early-stage companies in return for potential financial returns.

3. Assessing the Statement's Validity:

   • Common Practice: It is a widely recognized practice that startups often rely on angel investors as a primary source of initial funding, helping them to grow by providing the necessary capital for development and scaling.

Conclusion

Based on the definitions and the relationships between young companies, angel investors, and equity investment, the statement is indeed true.

Final Answer

True