Question

Which of the statements given below is/are correct?
• [(a)] Angel investors provide funding at an early stage of a startup.
• [(b)] An IPO allows a company to raise funds from the public.
• [(c)] All startups must go for IPO to survive.

• (a) and (b)
• (b) and (c)
• (c) only
• (a) and (c)

Hint:

Angel Investor $\rightarrow$ Early-stage funding IPO $\rightarrow$ Funds raised from the public

Answer 1

The Correct Option is A

Concept: Startups obtain funding through various sources such as angel investors, venture capitalists, bank loans and public offerings.

Step 1: Analyze statement (a).
Angel investors are individuals who provide capital to startups during their early stages. \[ \boxed{\text{Statement (a) is correct}} \]

Step 2: Analyze statement (b).
IPO stands for Initial Public Offering. Through an IPO, a company sells shares to the public and raises capital. \[ \boxed{\text{Statement (b) is correct}} \]

Step 3: Analyze statement (c).
Many successful startups continue as private companies and do not necessarily go for an IPO. \[ \boxed{\text{Statement (c) is incorrect}} \] Therefore, \[ \boxed{\text{Option (A)}} \]