The Founder of a Company Issues 200,000 Shares of Stock

question 84

Multiple Choice

The founder of a company issues 200,000 shares of stock of series A stock 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) 50.0%
• C) 62.5%
• D) 68.8%

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Definitions:

Internal Structure

The organizational framework and hierarchy within a company or entity that dictates how tasks are divided, coordinated, and overseen.

Accountability Chart

An organizational tool that maps out who is responsible for what tasks, clarifying roles and responsibilities within a business.

Environmental Protests

Public demonstrations or actions aiming to advocate for the protection of the environment and to protest against harmful environmental policies or practices.

Construction Delays

Instances when the progress or completion of a construction project is slower than planned, often leading to increased costs and extended timelines.