Use the Information for the Question(s)below

question 2

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 you own?

• A)50%
• B)40%
• C)33%
• D)25%

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Definitions:

Nonliving Things

Objects or substances that do not possess life, characterized by an inability to grow, metabolize, respond to stimuli, reproduce, or adapt.

Synthesis of ATP

The biological process of generating ATP (adenosine triphosphate), the energy currency of the cell, through various pathways including cellular respiration and photosynthesis.

Chemical Reactions

Processes by which substances interact to form new products, involving the rearrangement of atoms and changes in chemical properties.

ADP

Adenosine Diphosphate (ADP) is an important organic compound in metabolism, used for energy transfer in cells.