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%

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Definitions:

Albumin

A protein made by the liver that keeps fluid in the bloodstream and carries vitamins, enzymes, and hormones.

Fresh Frozen Plasma

A blood product made from the liquid portion of whole blood, quick-frozen to preserve clotting factors, used in treatments requiring coagulation support.

Packed Red Blood Cells

Concentrated red blood cells that have been separated from plasma and other components, commonly used in transfusions to treat anemia.

Laboratory Blood Bank

A specialized section in a laboratory for storing, processing, and distributing blood and its components for transfusion.