The Founder of a Company Issues 100 000 Class a Preference

question 63

Multiple Choice

The founder of a company issues 100 000 Class A preference shares 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)25.0%
• B)37.5%
• C)42%
• D)12.5%

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Definitions:

Registered Design

A legal protection for the visual design of objects that are not purely utilitarian, ensuring exclusive rights to the design holder.

Manufacturer

An entity or individual that makes goods for sale using raw materials and components.

Copyright Act

Legislation that protects the rights of creators by giving them exclusive control over the use and distribution of their original works.

Confidential Information

Any information that is not public knowledge and that is obtained from a source under circumstances that create an obligation to keep it confidential.