If an Investor Is Receiving $75,000 in Investment for 20

question 22

Multiple Choice

If an investor is receiving $75,000 in investment for 20 percent of the company, what is the company's post-money valuation?

• A) $375,000
• B) $15,000
• C) $60,000
• D) $450,000
• E) None of these are correct.

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Definitions:

Variances

The differences between planned or expected results and actual outcomes in budgeting and accounting.

Material Price Variances

The difference between the actual cost of materials and the expected or budgeted cost of materials in production processes.

Materials Account

An account used to track the costs of raw materials that are either in stock or being used in production processes.

Standard Cost

A predetermined cost of manufacturing a product or providing a service, used for budgeting and performance evaluation.