After the Venture Capitalist's Investment,what Percentage of the Firm Will

question 74

Multiple Choice

After the venture capitalist's investment,what percentage of the firm will you own?

• A)50%
• B)40%
• C)33%
• D)25%
• E)16%

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Definitions:

Contribution To Revenue

The portion of sales revenue that is not consumed by variable costs and contributes to covering fixed costs.

Double-Declining-Balance

A method of accelerated depreciation where an asset's book value is reduced at double the rate of traditional straight-line depreciation.

Book Value

The net value of an asset, calculated as the original cost minus accumulated depreciation, depletion, or amortization.

Plant Asset

Long-term tangible asset that is used in the production process of a company, such as machinery, buildings, and equipment, contributing to the company's operations.