A Company Has a Value of $400,000 and Is Looking

question 63

Multiple Choice

A company has a value of $400,000 and is looking for $500,000 in order to move into other markets and build the production capability to do so.What is the most likely source of funding?

• A)family and friends
• B)IPO
• C)angel investor
• D)venture capitalist

---

Definitions:

Centrally Planned Economy

An economic system where the government makes all decisions about what goods and services are produced, how they are produced, and who receives them.

Profits

The financial gain obtained from the difference between the amount earned and the amount spent in buying, operating, or producing something.

Corporation

A legal entity (“person”) chartered by a state or the federal government that is distinct and separate from the individuals who own it.

Personal Responsibility

The idea that an individual is accountable for their actions and wellbeing, including making decisions that affect their life and those around them.