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:

Terrestrial

Pertaining to or representing the land as opposed to water or air.

Monocot

One of two classes of flowering plants; monocot seeds contain a single cotyledon, or seed leaf. Compare with eudicot.

Linnaeus

Carl Linnaeus, an 18th-century Swedish botanist, physician, and zoologist who is known as the father of modern taxonomy for creating a system for naming, ranking, and classifying organisms.

Binomial System of Nomenclature

A formal system of naming species of living things by giving each a name composed of two parts, both of which use Latin grammatical forms.