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%

Understand the importance of human capital and how its significance varies across different workplace settings.

Understand the mechanics and calculations involved in futures contracts including margin requirements and rates of return.

Recognize the conceptual foundations of futures prices and their determinants, such as the role of spot prices and interest rates.

Explain the concept of basis and its convergence to zero at contract maturity.

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Definitions:

Suspicious

The inclination to believe that something may be wrong or that someone may be harmful without certain evidence.

Therapeutic Communication

A technique used by healthcare providers to support, inform, and empathize with patients, aiming to improve their health and well-being through verbal and nonverbal interaction.

Sullivan's Theory

A psychological theory developed by Harry Stack Sullivan that emphasizes the role of interpersonal relationships and social experiences in shaping personality.

Activities of Daily Living

Routine tasks that individuals do every day without needing assistance, such as eating, bathing, dressing, and mobility.