An Entrepreneur First Started His Business with $100,000

question 1

Multiple Choice

An entrepreneur first started his business with $100,000. Later, a venture capitalist agrees to invest $300,000 to sustain the growth. In return, this VC will take up a 50% equity position in the firm. How much is this business worth now?

• A) $400,000
• B) $600,000
• C) $700,000
• D) $800,000

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Definitions:

Constitutional Amendment

A formal change or addition to a constitution, often requiring a specific process of proposal and ratification by the government or the people.

Nationwide Election

An election process that occurs across an entire country to select national leaders or to decide on national policies.

Wilmot Proviso

An unsuccessful proposal in 1846 to prohibit slavery in the territory acquired by the United States at the end of the Mexican-American War.

Slave Power

A term used to describe the perceived political power held by slave owners in the United States during the 19th century, which influenced legislation and the balance of power in government.