An Entrepreneur Founded His Company Using $200,000 of His Own

question 14

Multiple Choice

An entrepreneur founded his company using $200,000 of his own money,issuing himself 200,000 shares of stock.An angel investor bought an additional 100,000 shares for $200,000.The entrepreneur now sells another 400,000 shares of stock to a venture capitalist for $1 million.What is the post-money valuation of the company?

• A)$1,000,000
• B)$1,140,000
• C)$1,750,000
• D)$2,000,000

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Definitions:

Optical Convention

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The practice of cultivating the soil, growing crops, and raising livestock for human use and consumption.

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