Suppose You Had Sold the 1 Million Shares to the Angel

question 69

Multiple Choice

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

• A)28.6%
• B)33.3%
• C)50%
• D)66.7%
• E)100%

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Definitions:

Consumer Equilibrium

The point at which the amount of a product demanded by consumers equals the amount supplied, leading to a stable market price.

Utility Maximization

The process by which individuals choose consumption combinations that maximize their satisfaction or utility under given constraints.

Income

The financial gain or money received by an individual or entity, usually through employment, investment, or business ventures.

Consumer Equilibrium

Consumer Equilibrium is the state at which the allocation of goods and services by a consumer ensures the maximum utility given their budget constraints.