Suppose You Had Sold the 1 Million Shares to the Angel

question 16

Multiple Choice

Suppose you had sold the 1 million shares to the angel investor for $500,000.What would have been the post-money valuation of your shares immediately following the angel investor's investment?

• A)$500,000
• B)$700,000
• C)$1.0 million
• D)$2.0 million
• E)$2.5 million

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Definitions:

Descendants

Individuals who are direct offspring or belong to subsequent generations of a particular ancestor or group of ancestors.

Trust

A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

Oligopolist

A firm or entity that operates in a market structure characterized by a small number of firms dominating the market, leading to limited competition.

Proctor & Gamble

A multinational corporation specializing in consumer goods ranging from personal care to cleaning products.