When a Company Founder Sells Stock to Outside Investors in Order

question 67

True/False

When a company founder sells stock to outside investors in order to raise capital, the share of the company owned by the founder and the founder's control over the company will be reduced.

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Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions.

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell at different prices during a certain period.

Quantity Supplied

The measure of products or services that producers are willing and able to make available for sale at a predetermined price throughout a certain time.

Relationship

The way in which two or more concepts, objects, or individuals are connected, or the state of being connected or interrelated.