Recently, Megan, Jennifer, and Mark, the cofounders of a medical products company, presented their business plan to

Question:

Recently, Megan, Jennifer, and Mark, the cofounders of a medical products company, presented their business plan to a group of investors in the hopes of receiving funding for their venture. One of the investors asked the three, “How much of your personal money do each of you have invested in this firm?” Is this a legitimate question for the potential investor to ask?

Why would an investor want to know how much of their own money each cofounder has committed to the proposed new venture?

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