Use the Information for the Question(s)below

question 5

Multiple Choice

Use the information for the question(s) below.
You founded your own firm two years ago. You initially contributed $250 000 of your own money and in return you received 2.5 million shares of stock. Since then, you have sold an additional 1.25 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.
-After the venture capitalist's investment, what percentage of the firm will you own?

• A)66%
• B)65%
• C)63%
• D)50%

---

Definitions:

Fraternal Twins

are siblings born at the same time who share the same womb but have different fertilized eggs, making them genetically similar as typical siblings.

Evolutionary Psychology

A theoretical approach in psychology that examines mental traits such as memory, perception, and language from a modern evolutionary perspective.

Evening People

Individuals who naturally prefer and are more active and alert in the evening hours, as opposed to morning people.

Ostracized

Being excluded, shunned, or ignored by others in a social or professional context.