An Ownership Structure in Which a Key Person Commands 15

question 32

True/False

An ownership structure in which a key person commands 15 to 25 percent or more of the company's equity because of his or her technical contribution will help raise venture capital.

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Definitions:

Accounts Receivable

Outstanding payments from customers to a firm for goods or services that have already been delivered or utilized but remain unpaid.

Journal Entry

A record in accounting that notes every financial transaction in the books via debits and credits.

Balanced Entry

An accounting entry where the sum of debits equals the sum of credits, maintaining the balance of the accounting equation.

Owner's Capital

The amount of equity a business owner has invested in the firm plus any profits retained in the business.