You Founded Your Own Firm Three Years Ago

question 93

Multiple Choice

You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 3 million shares of stock. Since then, you have sold an additional 2 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $4 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) 36%
• B) 29%
• C) 17%
• D) 21%

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Definitions:

Continuous Positive Airway Pressure

A treatment method using mild air pressure to keep the airways open, commonly used for patients with breathing problems, such as sleep apnea.

Nonpharmacological Intervention

Treatment methods that do not involve the use of medication, such as physical therapy, counseling, or lifestyle changes.

Pain Scale

A tool used in medical settings to assess the intensity of a patient's pain, typically ranging from 0 (no pain) to 10 (the worst pain).

Emergency Department

A specialized department in hospitals or healthcare facilities that provides immediate treatment to patients with acute illnesses or injuries.