You Founded Your Own Firm Three Years Ago

question 18

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 3 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $6 million and would receive 3million newly issued shares in return. After the venture capitalist's investment, what percentage of the firm will you own?

• A) 42%
• B) 33%
• C) 25%
• D) 20%

Understand how to prepare and analyze a sales budget.

Gain insights into the preparation of a cash budget and its components.

Learn about the calculation and importance of a budgeted production in units.

Understand the characteristics and purpose of a capital expenditures budget.

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Definitions:

Satisfactory Repair

denotes the condition in which an item or property has been fixed or restored to a state deemed acceptable by a reasonable standard or agreement.

Payable at a Definite Time

Refers to a financial obligation that is due to be paid on a specific date.

Fixed Date

A specific, agreed-upon date by which an event must occur or an action must be taken.

Time Readily Ascertainable

A term referring to a time period that can be easily and quickly determined or identified without significant delay or investigation.