You Founded Your Own Firm Three Years Ago

question 18

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 3 million shares of stock to angel investors. You are now considering raising capital from a venture capital firm. This venture capital firm would invest $6 million and would receive 3million newly issued shares in return. After the venture capitalist's investment, what percentage of the firm will you own?

• A) 42%
• B) 33%
• C) 25%
• D) 20%

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Definitions:

Belief Perseverance

A cognitive phenomenon where individuals stick to their initial beliefs even when faced with new, contradictory evidence.

Unanimous Verdict

A legal decision where all jurors agree on the verdict in a court case.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.

Defence Attorneys

Lawyers who represent individuals accused of crimes, ensuring their legal rights are protected and presenting their defense in court.