Suppose You Had Sold the 1 Million Shares to the Angel

question 69

Multiple Choice

Suppose you had sold the 1 million shares to the angel investor for $500,000.What would have been your percentage ownership in the company immediately following the angel investor's investment?

• A)28.6%
• B)33.3%
• C)50%
• D)66.7%
• E)100%

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Definitions:

Novation

The act of replacing one party in a contract with another party, or altering the terms of a contract, with all parties' consent, resulting in a new agreement.

Material Breach

A significant violation of a contract that permits the other party to either compel performance, seek remedies for damages, or terminate the agreement.

Nonbreaching Party

The party in a contract who has not violated the agreement and may be entitled to legal remedies.

Obligations

Duties or actions that an individual or entity is legally required to perform according to the terms of a contract or law.