One of the Biggest Incentives for Taking on the Risk

question 12

Multiple Choice

One of the biggest incentives for taking on the risk of a startup venture is the opportunity to acquire a/an ____ stake and participate in the potential upside if the startup is a success.

• A)buy-sell
• B)equity
• C)investor
• D)advisor
• E)None of these choices

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Definitions:

Central Bank

A national financial institution that provides banking services to the government and commercial banks of a country, and is responsible for the nation's monetary policy and currency issuance.

Policy Lags

The delay between the identification of a need for economic policy intervention and the actual effect of the policy on the economy.

Stabilization Policies

Government strategies aimed at maintaining economic stability by reducing inflation and unemployment.

Political Business Cycle

The concept that elected officials may induce expansions of the economy before elections to improve their chances of re-election.