A VC May Request a ____, a Penalty Requiring Founders

question 3

Multiple Choice

A VC may request a ____, a penalty requiring founders to give up some of their stock to the VC if the company does not achieve its projected performance goals. ​

• A)fair market provision
• B)stop-loss statement
• C)forfeiture provision
• D)liquidation agreement
• E)letter of intent

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Definitions:

Positive Economics

The branch of economics that concerns the description and explanation of economic phenomena.

Consequences

The outcomes or effects that stem from a particular action or decision, which can be intended or unintended and positive or negative.

Stability

The condition of an economy characterized by constant or predictable levels of growth, inflation, and employment.

Steady Rate

A constant or unchanging rate over a period of time, often used to describe economic growth, inflation, or other financial metrics.