Use the Information for the Question(s)below

question 78

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.
-Suppose you sold the 1 million shares to the angel investor for $500,000.What was your percentage ownership in the company immediately following the angel investor's investment?

• A)50%
• B)33.3%
• C)66.7%
• D)100%

Appreciate the challenges in measuring potential job performance and inherent abilities.

Learn about the processes and importance of establishing construct validity.

Understand the differences and applications of predictive and concurrent validity in the employment process.

Understand the various internal and external recruitment methods and their implications.

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Definitions:

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets.

Inventory

The goods and materials a business holds for the purpose of resale or production.

Quick Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its most liquid assets, excluding inventory.

Current Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its short-term assets.