Use the Information for the Question(s)below

question 6

Multiple Choice

Use the information for the question(s) below.
You founded your own firm three years ago.You initially contributed $200,000 of your own money and in return you received 2 million shares of stock.Since then,you have sold an additional 1 million shares of stock to angel investors.You are now considering raising capital from a venture capital firm.This venture capital firm would invest $5 million and would receive 2 million newly issued shares in return.
-Assuming that this is the venture capitalist's first investment in your firm,what percentage of the firm will the venture capitalist own?

• A)50%
• B)40%
• C)25%
• D)33%

---

Definitions:

Nyctalopia

A condition often referred to as night blindness, where individuals have difficulty seeing in low light or darkness.

Night Blindness

A condition that impairs the ability to see in low light or darkness.

Trich-

A prefix meaning related to hair.

Prefix

A morpheme added to the beginning of a word to alter its meaning or create a new word.