Simone Founded Her Company Using $200,000 of Her Own Money

question 41

Multiple Choice

Simone founded her company using $200,000 of her own money, issuing herself 300,000 shares of stock. An angel investor bought an additional 100,000 shares for $150,000. She now sells another 400,000 shares of stock to a venture capitalist for $2 million. What percentage of the firm does Simone now own?

• A) 11%
• B) 23%
• C) 38%
• D) 41%

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Definitions:

Reception Area

A space in an office or building where visitors are greeted and wait before being directed to their destination.

General Storage Closet

A space or room used for storing a wide range of items or supplies in a residential or commercial setting, typically not specialized for any specific type of goods.

Purchasing Groups

Groups of medical offices associated with a nearby hospital that order supplies through the hospital to obtain a quantity discount.

Quantity Discounts

Price reductions given to customers who purchase goods in large volumes, aimed at incentivizing bulk purchases and increasing sales volume.