An Entrepreneur First Started His Business with $100,000

question 43

Multiple Choice

An entrepreneur first started his business with $100,000.Later,a venture capitalist (VC) agrees to invest $300,000 to sustain the growth.In return,this VC will take up a 50% equity position in the firm.How much is this business worth now?

• A)$400,000
• B)$600,000
• C)$700,000
• D)$800,000

---

Definitions:

Revenue Management

Is the practice of strategically controlling inventory and pricing to maximize revenue, commonly used in industries like hotels, airlines, and hospitality.

Available Supply

The quantity of goods or materials in stock that is ready to be sold or distributed.

Maximize Profits

Maximizing profits is the strategic goal of increasing a company's earnings to its highest possible level by optimizing revenue streams and reducing costs.

Differential Pricing

The strategy of selling the same product to different customers at different prices.