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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 $5 million and would receive 4 million newly issued shares in return. Suppose you sold the 2 million shares to the angel investor for $500,000. What was your percentage ownership in the company immediately following the angel investor's investment?
Average Product
An economic measure of the output per unit of input, such as labor or capital.
Total Product
The overall quantity of output that a firm produces, typically within a specific time period, given a certain amount of inputs.
Total Product
The total quantity of output produced by a firm over a given period of time.
Units of Labor
Quantifiable measurements of labor force input, such as hours worked or number of workers, used in economic analysis to assess productivity or costs.
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