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The Founder of a Company Issues 100,000 Shares of Stock

question 66

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The founder of a company issues 100,000 shares of stock of series A stock for his own $250,000 investment.He then goes through three further rounds of investment,as shown below:
Which of the following is closest to the percentage of the company owned by the founder of the company?
The founder of a company issues 100,000 shares of stock of series A stock for his own $250,000 investment.He then goes through three further rounds of investment,as shown below: Which of the following is closest to the percentage of the company owned by the founder of the company?   A) 12.5% B) 25.0% C) 37.5% D) 42%


Definitions:

Resource Allocation

The process of distributing available resources among various competing needs or uses in order to achieve desired objectives.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of one good that can be produced for any given quantity produced of another good, given the resources and technology available.

Technological Change

The development and application of new technologies and methods in production, often leading to increased efficiency and productivity.

Unemployment

The situation when individuals who are capable of working and willing to work are unable to find employment.

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