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You Founded Your Own Firm Three Years Ago

question 93

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 $4 million and would receive 2 million newly issued shares in return. Assuming that this is the venture capitalist's first investment in your firm, what percentage of the firm will the venture capitalist own?


Definitions:

Health And Safety Legislation

Laws and regulations designed to ensure workplace safety and prevent health hazards for employees.

Employers

Individuals or organizations that hire and pay people to work for them, providing compensation in exchange for the employees' work and services.

Supervisors

Individuals in a position of authority within an organization who oversee and manage the work of other employees.

Workers

Individuals engaged in any form of physical or intellectual effort aimed at producing goods or providing services.

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