You Founded Your Own Firm Three Years Ago

question 82

Multiple Choice

You founded your own firm three years ago. You initially contributed $200,000 of your own money and in return you received 3 million shares of stock. Since then, you have sold an additional 2 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 4 million newly issued shares in return. Suppose you sold the 2 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) 40.0%
• C) 60.0%
• D) 100%

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Definitions:

Behavioral Phenotypes

Observable characteristics or behaviors that result from the interaction of genotype and environment.

Canalized

A process by which the genetic development of an organism is guided by the environment so that a certain phenotype is produced regardless of variability in the environment or genetics.

Niche Construction

The process by which organisms alter their own and each other’s environments, potentially affecting both their own evolution and that of other species.

Environmental Modification

The process of changing or altering the environment to suit specific needs or to mitigate detrimental impacts on human and ecological health.