Arborview Plant Science Company Has Invented a Drought Resistant Grass

question 182

Multiple Choice

Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year. In order to expand distribution worldwide, the company whose product produces lush green foliage needs serious funding. The handful of seed scientists that own the company are seeking ____________, but understand that they will relinquish a sizeable share of ownership in order to obtain the funds

• A) debenture capital
• B) international line of credit
• C) leverage
• D) venture capital

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Definitions:

Excise Tax

A tax levied on specific goods or services, such as tobacco or gasoline, typically imposed at the manufacturing or retail level.

Consumer Surplus

The separation between the theoretical price consumers are willing to pay for a good or service and the practical price they pay.

Point Price Elasticity

A measure of how the quantity demanded of a good responds to a change in the price of that good, calculated at a specific point on the demand curve.

Quarterly Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price over the span of three months.