A tech startup has three co-founders: Alice, Ben, and Carol. Alice owns 40% of the company shares. Ben owns twice as many shares as Carol. What percentage of the company does Carol own?

A 20%

B 30%

C 40%

D 60%

✓ Correct Answer: Option A

Alice owns 40%, leaving 100% - 40% = 60% for Ben and Carol. If Ben owns twice as much as Carol, their shares are in a 2:1 ratio. So, Carol owns 1/3 of the remaining 60%, which is (1/3) * 60% = 20%.

💡 Why is A) the correct answer?

The correct answer to the question "A tech startup has three co-founders: Alice, Ben, and Carol. Alice owns 40% of the company shares. Ben owns twice as many shares as Carol. What percentage of the company does Carol own?" is Option A: 20%.

The other options — B) 30%, C) 40%, D) 60% — are incorrect for this GMAT Exam Prep question. As explained above: Alice owns 40%, leaving 100% - 40% = 60% for Ben and Carol. If Ben owns twice as much as Carol, their shares are in a 2:1 ratio. So, Carol owns 1/3 of the remaining 60%, which is (1/3) * 60% = 20%.

📚 About This GMAT Exam Prep Practice Question

This 2-level GMAT Exam Prep question from the Data Insights topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GMAT Exam Prep practice test or use flashcards for spaced repetition review.

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A tech startup has three co-founders: Alice, Ben, and Carol. Alice owns 40% of the company shares. Ben owns twice as many shares as Carol. What percentage of the company does Carol own?

✓ Correct Answer: Option A

📚 About This GMAT Exam Prep Practice Question

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