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%

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Definitions:

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving judgment, evaluation, and consideration of possible outcomes.

Building Blocks

Fundamental components or units from which something is constructed or developed.

Generating Ideas

The creative process of brainstorming or coming up with new and innovative concepts, often a crucial early step in project development and problem-solving.

Creative Self-efficacy

The belief in one's capabilities to produce creative outcomes.